Volkswagen to slash 50,000 jobs amid profit slump

German automaker Volkswagen plans to cut 50,000 jobs by 2030 after reporting a 54% drop in pre-tax profits.

The job cuts are planned to be shared across Volkswagen's 10 brands, which include Porsche, Audi, Lamborghini and Bentley. The company said tariffs imposed by President Donald Trump, coupled with declining sales in North America and China have contributed to falling profits, News.Az reports, citing foreign media.

Volkswagen imports are subject to a 25% tariff by the United States.
"In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany," Oliver Blume, chairman of the Volkswagen Group executive board, said in a letter to shareholders. "We are operating in a fundamentally different environment."

As sales have declined in China, Chinese automakers have also moved into the European market, increasing competition.

The ongoing conflict in the Middle East have introduced greater uncertainty for the automaker as it tries to navigate a challenging market.

Volkswagen reported a 4.6% profit margin for fiscal year 2025. It is predicted to fall between 4% and 5.5% in the 2026 fiscal year.

Arno Antlitz, Volkswagen's chief of finance and operations, said that the group's profit margin is not sustainable.

"We can only realize this if we continue to rigorously reduce costs," Antlitz said.

Economic challenges have slowed the group's transition to electric vehicle production. Porsche has stalled this transition for the time being as profits fell by 98% in 2025.

News.Az 

By Ulviyya Salmanli