Trending Now - Volkswagen Plans 50,000 Job Cuts Amid Profit Decline
WHO:
Volkswagen, Europe's largest carmaker
WHAT:
Volkswagen's net profits in 2025 dropped by 44% to €6.9 billion (approximately $8 billion), down from €12.4 billion in 2024.
Porsche's net profit fell to €90 million in 2025, down from €5.3 billion in 2024.
Volkswagen's total revenue in 2025 was €322 billion, a decrease of roughly 0.8%.
The Volkswagen Group delivered 8.98 million vehicles in 2025, a decline of 0.5% from 2024.
Volkswagen's operating profit rose marginally from €2.59 billion to €2.61 billion in 2025.
Audi's operating profit decreased to €3.4 billion in 2025, down from €3.9 billion in 2024.
Volkswagen's operating profit margin dipped by 3.1 percentage points to 2.8% in 2025.
CEO Oliver Blume's total compensation in 2025 was €7.4 million, a decrease of around €3 million from the previous year.
Herbert Diess, Blume's predecessor, earned €9 million in 2025.
Volkswagen plans to eliminate 50,000 jobs
Post-tax profits have dropped to their lowest level since 2016
WHEN:
The job cuts are part of a strategy to be implemented in 2026
WHY:
The decline in profits was attributed to geopolitical tensions, tariffs, and intense competition, according to Chief Financial Officer Arno Antlitz.
The decision to cut jobs is driven by a need to rigorously reduce costs
HOW:
Volkswagen plans to achieve job cuts primarily through job-sharing, part-time deals for older workers, and voluntary severances, rather than redundancies.
Volkswagen will focus on cost reduction in the coming months
(UPDATED March 11, 2026 01:27 UTC)
Volkswagen reported a significant drop in net profits for 2025, falling by 44% to €6.9 billion, while Porsche's profits plummeted to €90 million from €5.3 billion the previous year. The decline has been attributed to geopolitical tensions, tariffs, and fierce competition, prompting the company to implement job cuts through job-sharing and voluntary severances rather than layoffs. Despite these challenges, Volkswagen's operating profit saw a slight increase, rising from €2.59 billion to €2.61 billion, although their operating profit margin dipped to 2.8%.
--
(UPDATED March 10, 2026 17:18 UTC)
Volkswagen, Europe's largest carmaker, has announced plans to eliminate 50,000 jobs as part of a strategy aimed at reducing costs, which will be implemented in 2026. This decision comes as the company's post-tax profits have dropped to their lowest level since 2016. In the coming months, Volkswagen will focus on rigorous cost reduction measures to navigate these financial challenges.