Volkswagen to Cut 50,000 Jobs as Profits Fall

German automobile giant Volkswagen has announced plans to cut 50,000 jobs in Germany by 2030 following a sharp drop in profits, as the company grapples with rising costs and intense competition in the global auto market.

The move comes after the automaker reported a 44 percent decline in earnings, with profits falling to €6.9 billion, its lowest level since the aftermath of the 2016 diesel emissions scandal.

Confirming the decision, Volkswagen CEO Oliver Blume said the job cuts are part of a broader restructuring effort aimed at reducing costs and strengthening the company’s competitiveness.

“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Blume said in a letter to shareholders.

The job reductions will affect several brands under the Volkswagen Group, including Audi, Porsche and the company’s software subsidiary Cariad.

Volkswagen had earlier reached an agreement with labour unions in 2024 to eliminate 35,000 positions as part of a cost-saving plan expected to generate about €15 billion annually, but the latest restructuring expands the scale of the layoffs.

Europe’s largest carmaker is currently facing multiple challenges including weak demand in Europe, declining sales in China, U.S. tariffs on foreign vehicles and the high cost of transitioning to electric vehicles.

Industry analysts say the sweeping job cuts highlight the growing pressure on traditional automakers as they race to remain competitive in the fast-changing global auto industry.