Europe’s largest automaker, Volkswagen, is to shed 50,000 jobs by the top of the last decade, because it faces falling gross sales in China and North America and punitive US tariffs imposed by Donald Trump.
The ten-brand group, whose luxurious subsidiaries Porsche and Audi are additionally underneath stress, stated the roles would go in Germany, affecting all the group, as a part of a restructuring drive in mild of the darkening international enterprise local weather.
The group had already struck a cope with German commerce unions on the finish of 2024 to slash 35,000 jobs by 2030, partially by pure attrition by means of retirement and different workers departures.
Volkswagen revealed the up to date plans because it introduced a 54% drop in pre-tax income. The group has been scaling again its targets for electrical automobile (EV) manufacturing in latest months, together with at its Italian supercar manufacturer, Lamborghini.
Because the US-Israeli military action against Iran stokes market uncertainty and drives up energy prices, Volkswagen warned that international turbulence would negatively have an effect on its outlook.
“Challenges are anticipated specifically from the macroeconomic atmosphere, uncertainties relating to restrictions in worldwide commerce and geopolitical tensions,” the corporate stated.
This might improve “aggressive depth” and volatility on “commodity, vitality and international trade markets”, it stated in a press release.
The Volkswagen Group chief govt, Oliver Blume, stated later the Iran conflict was not hitting Volkswagen’s provide chain however may have an effect on demand for its premium marques Audi and Porsche.
“We’re merely seeing how unstable and fragile our world is, with new points arising each month,” Blume stated, pointing to a possible drag on gross sales from the battle within the area, the place volumes are modest however margins excessive.
The autumn in income, to €8.9bn (£6.6bn), was largely “attributable to US tariffs”, the corporate reported, in addition to a expensive technique shift at Porsche, which has postponed its transition to EVs owing to slack demand.
Porsche’s working revenue practically vanished in 2025, falling by 98% to €90m.
Even earlier than Trump slapped tariffs on foreign carmakers last year, Volkswagen was combating flat demand in Europe and the prices of investing in EVs regardless of disappointing demand and inadequate infrastructure.
Home competitors ate away on the group’s share in China, the world’s largest automobile market. Blume introduced “the most important product marketing campaign in our historical past” there to attempt to claw again prospects.
“After three intensive years of realignment throughout the Volkswagen Group, we’re seeing tangible progress,” Blume stated. “On the similar time, we’re working in a basically totally different atmosphere.”
Reuters contributed to this report
