VOLKSWAGEN TO CUT 50,000 JOBS AS PROFITS DECLINE. (PHOTO).

 Volkswagen to cut 50,000 jobs as profits decline

Germany’s automotive giant Volkswagen said Tuesday it will cut 50,000 jobs in Germany by 2030 as profits fell to their lowest level in nearly a decade. The reduction comes as the 10-brand group faces Chinese competition, U.S. tariffs, and high costs.

CEO Oliver Blume said the cuts will affect Volkswagen’s main brand, as well as Audi, Porsche, and its software subsidiary Cariad. The company had already agreed to cut 35,000 jobs at Volkswagen by 2030 as part of plans to save 15 billion euros ($17.4 billion) annually.

Volkswagen has struggled with stagnant demand in Europe, the high cost of electric vehicle investment, and falling sales in China, where local rivals BYD and Geely have overtaken the company. Blume said that Chinese automakers entering the European market will increase price pressure and that the company must intensify cost management.

Earnings after tax fell about 44% last year to 6.9 billion euros ($8 billion), the lowest since 2016, affected by U.S. tariffs, Chinese competition, and costly investments in Porsche. Blume described the situation as a decisive break for the German automotive industry, saying the traditional business model is no longer viable and Volkswagen must compete with emerging rivals.

For 2026, the company expects a core profit margin of 4% to 5.5%, potentially lower than the 4.6% achieved this year after restructuring and Porsche-related costs. Volkswagen has extended the production of gas-powered Porsche vehicles amid slow EV demand, despite European CO2 regulations.

Blume said geopolitical events, including the Middle East conflict, have limited impact, though sales in Ukraine, Russia, the U.S., and China have recently declined.