US tariffs and imports from China destroy the biggest “player” in the German economy » 50,000 layoffs are announced until 2030

According to the company's annual report, net profit after taxes fell from 12.4 billion euros to 6.9 billion euros, which means a decrease of about 44%. It is the lowest level of profit recorded by the group since 2016, notes the BBC.

The Volkswagen giant is preparing for mass layoffs

Chief executive Oliver Blume told shareholders that the staff cuts will affect the entire group, including the Audi and Porsche brands, and will be part of a wider cost-cutting plan.

The company has already reached an agreement with unions to cut more than 35,000 jobs by 2030in a way management describes as “socially responsible”. Through these measures, Volkswagen estimates savings of approximately 15 billion euros.

680,000 employeeshas Volkswagens globally, of which almost 300,000 in Germany.

The decrease in profit is attributed to several factors: the 25% import tariffs imposed by the United States on cars, the increasingly strong competition from Chinese manufacturers, but also the high costs generated by the transition to the production of electric vehicles.

In addition, the company was affected by the decline in demand in the Chinese market, which in the past represented the most important market for Volkswagen. At the same time, Chinese car manufacturers are increasingly expanding their presence on the European market, increasing the pressure on European manufacturers.

8.98 million vehiclesdelivered VW in 2025 worldwide, with the group surpassed only by Toyota. In Europe, Volkswagen remains by far the largest car group, with a market share of around 26–27%, meaning that over a quarter of new cars sold on the continent come from one of its brands.

For 2026, Volkswagen estimates an operating profit margin between 4% and 5.5%a level close to that recorded this year, of 4.6%. But the company's management says it expects a gradual return to results if the cost-cutting plan is rigorously implemented.

The outlook for economic growth is also affected by ongoing geopolitical tensions and conflicts. The risks mainly stem from the conflict between Russia and Ukraine, the confrontations in the Middle East, as well as the growing uncertainties related to the direction of the United States policy and the global increase in geoeconomic measures, which could further amplify geopolitical tensions.

– passage from the Volkswagen report

• Volkswagen is Germany's largest company by revenue. In 2025, the group had a turnover of approximately 322 billion euros, which places it in 1st place among German companies, ahead of other industrial giants such as BMW, Mercedes-Benz, Siemens or Deutsche Telekom. Estimates show that Volkswagen contributes almost 8% to Germany's GDP if direct and indirect effects are taken into account

• Volkswagen's revenues (approx. 322 billion euros) are comparable to the economy of an average country in the world.

• Audi, Lamborghini, Bentley, Seat, Skoda, MAN, Volkswagen, Scania are the most important brands owned by the VW group.