Pecohub Volkswagen plans to cut about 50,000 jobs in Germany by 2030 as part of a broader effort to save around 15 billion euros annually amid declining profits and mounting competitive pressures.
The plan was disclosed by the company’s Chief Executive Officer, Oliver Blume, in a letter to shareholders published in the automaker’s annual report.
The job cuts come as Europe’s largest automaker grapples with declining profits, rising competition in China, high investment costs in electric vehicles, and the impact of tariffs imposed on non-American carmakers by the United States.
Blume said the planned workforce reduction would affect operations across the group in Germany over the next several years.
- “In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” he said.
The job cuts build on an earlier agreement reached with labour unions in 2024 to eliminate 35,000 roles by 2030, with additional reductions expected across several divisions, including the group’s premium brands Audi and Porsche, as well as its software subsidiary Cariad.
Meanwhile, Volkswagen’s finance chief, Arno Antlitz, said further cost-cutting measures were necessary to restore the company’s long-term competitiveness.
- “We can only realise this if we continue to rigorously reduce costs,” he said. “That is what we will focus on in the coming months.”
Volkswagen reported that its earnings after tax fell by about 44% last year to €6.9 billion (around $8 billion), marking the company’s lowest profit since 2016 when it faced heavy costs linked to the diesel emissions scandal.
- The company said multiple factors contributed to the decline, including tariffs introduced by U.S. President Donald Trump, intensifying competition in China, and the costly restructuring of Porsche’s operations.
- The German automaker has also been under pressure from the global transition toward electric vehicles, which has required heavy investment despite uneven consumer demand in many markets.
Once the dominant foreign automaker in China — the world’s largest car market — Volkswagen has recently lost ground to domestic competitors such as BYD and Geely.
The company warned that its profit margin may remain under pressure, forecasting a core operating margin of between 4% and 5.5% in 2026, potentially lower than the 4.6% margin achieved in the previous year.
The layoffs also reflect a broader trend of companies across industries cutting jobs to manage rising costs and economic uncertainty.
