Volkswagen, the major automobile manufacturer, announced plans to reduce its workforce in Germany by 50,000 positions within the next four years after the company’s profits dropped to their lowest level in a decade.
On 10 Mar 2026 GMT+7, Volkswagen, the large German carmaker, announced it would cut 50,000 jobs in the country by 2030 after the company’s profits fell to their lowest level since 2016.
Oliver Blume, CEO, informed shareholders that these layoffs will take place in Germany and affect the entire corporate group, including subsidiary brands such as Audi and Porsche.
Europe’s largest carmaker stated that the company’s after-tax profit in 2025 fell about 44%, from €12.4 billion to only €6.9 billion.
The company explained that the profit decline was impacted by U.S. import tariffs, intense competition from China, and high restructuring costs related to the transition to electric vehicle (EV) production.
Although the company expects a recovery next year, the Chief Financial Officer emphasized that strict cost-cutting remains essential.
"Overall, we plan to reduce around 50,000 jobs across the Volkswagen Group in Germany by 2030," Blume wrote in a letter to shareholders in the company’s annual report, adding, "We are operating in a completely changed environment."
Previously, the group reached an agreement with labor unions to reduce more than 35,000 jobs nationwide in a socially responsible manner by 2030, aiming to save about €15 billion (approximately 550 billion baht).
Volkswagen and other German carmakers are heavily affected by declining vehicle demand in China, once a highly profitable market, while Chinese car brands are increasingly entering Europe, intensifying sales competition.
Additionally, former U.S. President Donald Trump’s decision to impose a 25% import tariff on cars has further complicated the situation.
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Source:bbc