Volkswagen to cut 50,000 jobs as profits drop

31 minutes agoGeorge WrightGetty ImagesVolkswagen has said it will cut 50,000 jobs in Germany by 2030 as its profits dropped to their lowest level since 2016.Chief executive Oliver Blume told shareholders that the cuts would take place in Germany and fall across the entire group, including Audi and Porsche.Europe's largest carmaker said post-tax profits had fallen by around 44% in 2025.It said it was hit by US import tariffs, intense competition from China and high restructuring costs from the shift to electric vehicles.The firm projects a recovery in the coming year, but its finance chief stressed that it would have to focus on "rigorously" reducing costs."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 in the firm's annual report."We are operating in a fundamentally different environment," he added.The group had already struck a deal with unions to cut more than 35,000 jobs across the country in a "socially responsible manner" by 2030, in order to save some €15bn (£12.4bn).Volkswagen, along with other German carmakers, has been badly affected by a decline in demand for its cars in China, previously a lucrative market.At the same time, Chinese brands have been moving into Europe, increasing competition for sales.In its annual figures, Volkswagen said its net profit after tax fell from €12.4bn (£10.7bn; $14.4bn) to €6.9bn (£6.1bn; $8bn) last year.For 2026, Volkswagen said it predicted a core profit margin of between 4% and 5.5% - potentially lower still than the 4.6% it achieved this year.Volkswagen finance boss Arno Antlitz warned that the group's profit margin was "not sufficient in the long run" and said that further cost-cutting was needed."We can only realise this if we continue to rigorously reduce costs," he said. "That is what we will focus on in the coming months."