Volkswagen profits plummet in 2025, plans to lay off 50,000 people in Germany

German automaker Volkswagen Group released its financial report on the 10th, showing that the group’s after-tax profit in 2025 fell by about 44% year-on-year, from 12.4 billion euros to 6.9 billion euros, the lowest level since 2016. The group plans to further cut costs and eliminate approximately 50,000 jobs in Germany by 2030.
Data show that the Volkswagen Group's operating profit in 2025 will be approximately 8.9 billion euros, almost halved from 2024; revenue will be basically the same at approximately 322 billion euros. The group said that the main reasons for the decline in profits were the increase in tariffs imposed by the United States, adjustments to related costs, exchange rates and price factors for its brand Porsche.
Volkswagen plans to continue its cost-cutting measures. According to reports, Obermu, chairman of the group's management board, stated in a letter to shareholders that the group will reduce a total of about 50,000 jobs in Germany by 2030. Volkswagen has reached an agreement with unions by the end of 2024 and plans to cut about 35,000 jobs by 2030, mainly involving the Volkswagen brand, as part of the company's cost-saving plan. The new layoffs will mainly involve Audi, Porsche and the group's software company Cariad.
Despite pressure on performance in 2025, Volkswagen expects to regain profitability in 2026. It is said that the group's operating profit margin before interest and tax is expected to rebound to 4.0% to 5.5% this year, and drop to 2.8% in 2025.