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Volkswagen will cut 50,000 jobs in Germany by 2030 due to US tariffs, China competition, and restructuring costs.
Volkswagen Job Cuts.
Volkswagen Layoffs: German automaker Volkswagen is set to slash around 50,000 jobs by the end of 2030 as the company was hit by US import tariffs, intense competition from China and restructuring costs from the shift to electric vehicles.
“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany”, CEO Volkswagen Group, said in the letter to shareholders. “As a result of collective bargaining agreements and downsizing measures, we managed to achieve cost savings of around €1 billion in fiscal year 2025 as planned. We are on course to meet our goal of achieving net annual cost savings of more than €6 billion across the Group by 2030,” he added.
Volkswagen said that the job cuts would happen in Germany across the group, including luxury brands such as Porsche and Audi, as part of a restructuring effort amid the falling profits.
The company’s profitability declined sharply. Operating profit fell 53% year-on-year to EUR 8.9 billion, translating into an operating margin of 2.8% in 2025. The drop was attributed to factors including U.S. tariffs, expenses related to adjustments in Porsche’s product strategy, currency impacts and pricing pressures, partially offset by ongoing cost-reduction programs.
Demand For EV Increases & Future Outlook
With gloomy days ahead, the group has cut down its targets for electric vehicle production in recent months, including its Italian supercar manufacturer, Lamborghini.
“Challenges are expected in particular from the macroeconomic environment, uncertainties regarding restrictions in international trade and geopolitical tensions,” the company said.
Demand for electric vehicles continued to strengthen. In Europe, order intake for vehicles rose about 13% compared with 2024, driven largely by battery electric vehicles (BEVs), whose orders surged roughly 55% and accounted for about 22% of the order backlog.
“By the end of 2027, we will have launched 30 new all-electric, plug-in hybrid and range-extended models onto the Chinese market,” the company said.
Looking ahead, Volkswagen expects sales revenue to grow between 0% and 3% in 2026, with an operating margin projected in the range of 4% to 5.5%. The company also plans to accelerate its transition toward electric mobility, including the launch of affordable electric vehicles with premium technology, while continuing investments in batteries, software and autonomous driving technologies.
March 11, 2026, 07:07 IST
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