Volkswagen Plans to Cut 50,000 Jobs Globally by 2030 Amid Lowest Operating Profit in a Decade

On June 18, German automaker Volkswagen Group announced an acceleration of its business restructuring, planning to cut approximately 50,000 jobs by 2030, including 19,000 positions in Germany by the end of 2024. The restructuring measures include reducing administrative and operational costs, optimizing production footprints, streamlining organizational structures, and accelerating technological development. Volkswagen Group, which owns brands such as Volkswagen, Audi, and Porsche, has already reduced costs by around €1 billion through labor-management negotiations and workforce reductions. Its target is to achieve annual net cost savings of €6 billion by 2030. Company executives stated that cost-cutting alone cannot restore profitability, and more aggressive reforms will be implemented over the coming years to navigate prolonged market volatility while maintaining stable vehicle deliveries. Financial data shows that Volkswagen’s full-year 2025 revenue amounted to approximately €321.91 billion, down 0.8% year-over-year; operating profit was about €8.9 billion, a 54% decline from the previous year—the lowest since 2016; and net profit after tax fell by roughly 44%, from €12.4 billion in 2024 to €6.9 billion in 2025. The profit decline was primarily driven by four factors: approximately €3 billion in losses due to newly imposed U.S. import tariffs, expenses related to Porsche’s product strategy adjustments, foreign exchange losses from currency fluctuations, and compressed margins resulting from intensified global price competition and shifts in product mix. Arno Antlitz, Chief Financial Officer and Chief Operating Officer of Volkswagen, noted that even excluding one-off items, the company’s 2025 operating margin of 4.6% remains insufficient, necessitating further cost reductions, greater realization of synergies, and simplification of operations. In the first quarter of 2026, Volkswagen reported revenue of €75.657 billion, down 2.5% year-over-year; operating profit of €2.463 billion, a 14.3% decrease; and global vehicle deliveries of 2.049 million units, down 4% compared to the same period last year. Meanwhile, several other international automakers have also advanced workforce reductions. Nissan announced in early May 2024 plans to cut around 900 jobs in Europe. Ford Motor Company revealed in September 2023 that it would lay off 1,000 workers at its Cologne, Germany plant by early 2026 and aims to reduce its European workforce by 4,000 employees by the end of 2027—2,900 of whom are based in Germany. This plan triggered the first strike at the Cologne plant since it began operations in 1930. Industry analysts note that the global automotive sector is under mounting pressure from the transition to electrification, high R&D and operational costs, and intensifying competition from emerging markets, prompting multinational automakers to adjust their global footprints through measures such as layoffs and plant closures to enhance efficiency. According to a report released on June 17 by BloombergNEF, global sales of new energy passenger vehicles are projected to exceed 23 million units in 2026, an 11% year-over-year increase, accounting for more than 25% of total new vehicle sales worldwide. The share is expected to reach 52% by 2035. Despite varying paces of transition across markets, the long-term trend toward electrification remains firmly intact.