Volkswagen Group is set to eliminate 50,000 jobs in Germany by 2030. This drastic measure follows a nearly 44% collapse in net profit, falling to €6.9 billion in 2025, marking the company's worst performance since the diesel emissions scandal.
Chief executive Oliver Blume confirmed the job reductions, significantly exceeding previous plans. Revenue remained stagnant at approximately €322 billion, with operating profit nearly halving to around €8.9 billion. The company cited geopolitical tensions, new trade barriers, and intense competition, particularly from China, as key factors.
Volkswagen faced significant setbacks in China and North America, with global vehicle deliveries decreasing by 0.5% to 8.98 million units in 2025. Tariffs impacted the US market, while changes in environmental regulations and reduced subsidies cooled demand for electric vehicles. In China, local manufacturers like BYD and Geely are rapidly gaining market share.
The sports car brand Porsche experienced a sharp decline in Chinese sales and is now pivoting back to combustion engine models after previously prioritizing electric vehicles.
Despite the severe earnings collapse, executive board members are expected to receive millions in bonuses, driven by strong net cash flow. This has sparked anger among employee representatives, who are demanding similar profit-sharing.
However, Volkswagen anticipates a recovery in 2026, with expectations for the operating margin to improve to between 4.0% and 5.5%.