German car giant Volkswagen's operating profit halved! CEO says they will lay off 50,000 employees

German automaker Volkswagen Group released its financial report on the 10th, showing that by 2025, the group’s operating profit will decrease by approximately 54% year-on-year, reaching the lowest level since 2016. The group plans to cut about 50,000 jobs in Germany by 2030.

The financial report shows that Volkswagen’s total revenue for 2025 will be approximately €321.91 billion, a 0.8% decrease compared to the previous year; operating profit will be about €8.9 billion, down approximately 54% year-on-year. The group stated that the main reasons for the profit decline are U.S. tariffs, adjustments to costs related to its sports car brand Porsche, exchange rate and pricing factors.

Volkswagen Group CEO Oliver Blume said in a letter to shareholders, “By 2030, the group will cut approximately 50,000 jobs in Germany.” The group reached an agreement with labor unions at the end of 2024 to cut 35,000 jobs, mainly involving the Volkswagen brand, as part of the company’s cost-saving plan. The layoffs will mainly affect premium brands Audi, Porsche, and the group’s software company Cariad.

Volkswagen stated that international trade restrictions, geopolitical tensions, and fluctuations in commodity and energy markets could create uncertainties for future performance. The group will continue to strictly control costs to enhance overall competitiveness.

Volkswagen’s vehicle sales in 2025 are expected to be around 9 million units, roughly the same as the previous year. Notable increases in Europe (up 5%) and South America (up 10%) were offset by expected declines in North America (down 12%) and China (down 6%) due to challenging market conditions. Its sales are behind Japan’s Toyota and rank second globally.

Volkswagen predicts that in 2026, sales revenue will grow by 0% to 3% year-on-year, with an operating profit margin expected to be between 4.0% and 5.5%.

In fact, last October, Volkswagen Group experienced its first quarterly loss in five years. The financial report showed that in Q3 2025, revenue was approximately €80.305 billion, a 2.3% increase; net loss was €1.072 billion, down about 168.8% year-on-year, marking Volkswagen’s first quarterly loss in nearly five years.

Previously, Volkswagen Group’s net profit in 2024 reached €102.92 billion (about $124 billion), making it the second most profitable car company in the world after Toyota. (Compiled from Xinhua News Agency, Red Star Capital Bureau, etc.)

(Edited by: Wen Jing)

Keywords: Volkswagen