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German car maker Volkswagen plans to cut about 50,000 jobs by the end of 2030 because of US import taxes, strong competition from China, and costs from changing to electric cars. “Overall, about 50,000 jobs will be lost by 2030 in the Volkswagen Group in Germany,” the CEO of Volkswagen Group mentioned in a letter to shareholders. “Through deals made and job reduction efforts, we have been able to save around €1 billion in the financial year 2025, as expected. We are on track to reach our aim of saving over €6 billion annually across the Group by 2030,” he continued. Volkswagen stated that the job cuts would occur in Germany throughout the group, including high-end brands like Porsche and Audi, as part of a restructuring plan due to decreased profits. The company’s profit has significantly dropped. Operating profit plummeted 53% compared to the previous year, down to EUR 8.9 billion, leading to an operating margin of 2.8% in 2025. This decline was due to various reasons, including U. S. tariffs, costs related to changes in Porsche’s product strategy, currency effects, and pricing pressures, although some savings were made through cost-cutting measures.

Facing a tough future, the group has lowered its targets for making electric vehicles recently, including its Italian luxury car maker, Lamborghini. “We anticipate difficulties mainly from the economic situation, uncertainties around international trade restrictions, and geopolitical issues,” the company stated. Demand for electric cars has continued to grow. In Europe, vehicle orders increased by about 13% compared to 2024, mainly due to battery electric vehicles (BEVs), which saw a rise in orders by around 55%, making up about 22% of the order backlog. “By the end of 2027, we will introduce 30 new fully electric, plug-in hybrid, and range-extended models to the Chinese market,” the company added. Looking forward, Volkswagen predicts sales revenue to rise between 0% and 3% in 2026, with an expected operating margin of 4% to 5.5%. The company also intends to speed up its move towards electric vehicles, including offering affordable electric cars with high-end technology, while continuing to invest in batteries, software, and self-driving technology.