Volkswagen, 50 thousand fewer jobs by 2030

Volkswagen ended 2025 with after-tax profits decreased by approximately 44% since the US tariffsthe strong competition in China and a costly revamp of its sports car maker Porsche weighed on the performance. The profits after taxes in 2025 were equal to 6.9 billion eurosreported the German automotive giantthe lowest since 2016, when the group, which has 10 brands, took on billions in one-off charges due to recalls and legal troubles for diesel emissions test cheating. Warning that the profit margin of the group “it will not be sufficient in the long term”, the financial chief of Volkswagen, Arno facesaid more may be expected cost reduction measures to make the company more competitive. “We can only achieve it if we continue to rigorously reduce costs – he said – this is what we will focus on in the coming months”.

Il German automotive giant provides a recovery of profitability for the current year, aiming for a operating margin between 4% and 5.5% in 2026. Last year’s margin came in at 2.8%, slightly lower than the expected 2.9%, according to analysts surveyed by Visible Alpha, and fell from 5.9% a year earlier. THE’operating profit it more than halved in 2025 to 8.9 billion, missing analysts’ forecast of 9.4 billion, dragged by duties and from an expensive one course correction compared to electric in the subsidiary Porsche. I revenues remained stagnant to 322 billion euros, with little hope of growth in 2026when the company expects them to develop in a range between 0% and 3%. The CFO Arno Antlitz stated that the product launch and the restructuring measures in 2025 they will be important to increase the Volkswagen’s resilience. “My he operating margin of 4.6% adjusted for restructuring is not sufficient in the long term,” he said, adding that Volkswagen will continue to rigorously reduce costs.

Job cuts to reduce costs

Volkswagenthe largest car manufacturer in Europeannounced a cuts of 50,000 jobs in Germania by 2030more than previously expected, for reduce costs in the face of the strong competition from Chinafrom the stagnant demand in Europe and of US tariffs. “In total, by 2030 in the entire group Volkswagen in Germania they will be cut approx 50,000 jobs“said the company’s CEO, Oliver Blumein a letter to shareholders on the occasion of the presentation of the annual results. The group had reached an agreement with the unions at the end of 2024 for reduce 35,000 jobs by 2030as part of plans for save 15 billion euros per year.