WOLFSBURG, Germany: Volkswagen said Tuesday (Mar 10) that it would cut 50,000 jobs in Germany by 2030 as its profit slid to its lowest level since 2016.
“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Volkswagen CEO Oliver Blume said in a letter to shareholders in the firm’s annual report.
The 10-brand group had already struck a deal with unions at the end of 2024 to cut 35,000 jobs by 2030, mostly at its namesake brand, as part of plans to save 15 billion euros a year.
The additional cuts would come from premium brands Audi and Porsche as well as Volkswagen’s software subsidiary Cariad, Blume added.
Even before US President Donald Trump slapped tariffs on non-American carmakers last year, Europe’s largest automobile manufacturer was facing a triple whammy of stagnant demand in Europe, the costs of investing in electric cars despite patchy demand, as well as cratering sales in China.
Long the biggest player in the Chinese market, the world’s largest, Volkswagen is struggling with fierce competition from local rivals and sales there have slipped behind those of BYD and Geely.
Earnings after tax fell about 44 per cent last year, Volkswagen said, with US tariffs, fierce competition in China and a costly revamp of its sports car maker Porsche, all hitting performance.
At 6.9 billion euros (US$8 billion), earnings were at their lowest since 2016, when the group took billions in one-off charges due to recalls and legal troubles over cheating on diesel emissions tests.