WASHINGTON (dpa-AFX) - Volkswagen, the German automaker, has announced plans to cut around 50,000 jobs in Germany by 2030 after reporting a sharp decline in profits.
The company's post-tax profit dropped by approximately 44% in 2025, falling to 6.9 billion euros from 12.4 billion euros the previous year.
The company cited several factors contributing to the profit decline, including rising costs, weaker demand in China, and pressure from U.S. tariffs.
Volkswagen's Chief Executive Officer, Oliver Blume, stated that the job reductions will span the entire group, including its premium brands such as Audi and Porsche.
Volkswagen's Finance Chief, Arno Antlitz, emphasized the need for the company to focus on rigorous cost reductions to improve its profit margins. The automaker expects a core profit margin of between 4% and 5.5% in 2026, compared to a margin of 4.6% in the current year.
The company's results were also impacted by the transition to electric vehicles, which has led to high restructuring costs. Additionally, the automaker faces increased competition from Chinese carmakers, who are expanding into the European market.
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