Volkswagen Group, the guardian firm of auto manufacturers together with Porsche, Audi and Skoda, has introduced plans to slash its German workforce by 50,000 over the subsequent 4 years.
The determine is 15,000 increased than the quantity that Europe’s largest automaker beforehand confirmed in 2024, when it mentioned 35,000 jobs could be minimize by 2030 after reaching a take care of German commerce unions.
Volkswagen introduced the numerous job cuts whereas revealing a 53 per cent drop in pre-tax earnings throughout the Volkswagen Group Annual Media, Analyst and Investor Convention in Wolfsburg, Germany this week.
It mentioned the extra job losses stemmed from the volatility of worldwide auto markets.
CarExpert can prevent 1000’s on a brand new automobile. Click on right here to get an ideal deal.
“2025 was formed by geopolitical tensions, tariffs and intense aggressive strain,” mentioned Volkswagen Group chief monetary officer Arno Antlitz in an announcement.
“[But] the working margin of 4.6 per cent, adjusted for restructuring, just isn’t enough in the long term on this difficult surroundings.
“We need to maintain our combustion-engine autos technologically aggressive, proceed investing in thrilling electrical autos and the newest software program options for our clients, and develop our regional presence, notably in the USA.
“We will solely realise this if we proceed to carefully cut back prices, leverage Group synergies, cut back complexity and thus sustainably improve profitability. That is what we are going to concentrate on within the coming months.”
The corporate bought 9 million autos throughout all of its manufacturers in 2025 – a comparatively flat quantity in contrast with the 9.03 million gross sales it notched up in 2024 – when Audi and Porsche specifically wound again their electrical car (EV) improvement plans on account of slower EV gross sales progress.
After closing its Brussels, Belgium plant in February 2025, Volkswagen additionally closed its Dresden manufacturing unit in December final yr – the primary closure of a Volkswagen plant in Germany within the automaker’s historical past.
In Australia, Volkswagen gross sales have been down 20.6 per cent in 2025, following a 16.8 per cent fall the earlier yr.
Whereas Volkswagen Group CEO Oliver Blume mentioned the automaker was making “tangible progress” after “three intensive years of realignment”, the corporate mentioned its headwinds are usually not over, with Blume including: “We’re working in a essentially completely different surroundings.”
Mr Blume mentioned the corporate will enter its subsequent section in 2026, when it would introduce “inexpensive electrical mobility with premium know-how” with a specific concentrate on China, the place he mentioned Volkswagen “will begin the most important product marketing campaign in our historical past”.
“Challenges are anticipated specifically from the macroeconomic surroundings, uncertainties concerning restrictions in worldwide commerce and geopolitical tensions,” continued the corporate assertion, which mentioned this might improve “aggressive depth” and volatility in “commodity, vitality and overseas trade markets”.
Australian showrooms will see loads of new Volkswagen fashions arrive within the close to future, together with plug-in hybrid (PHEV) variations of the new-generation Tiguan and Tayron SUVs, and the Multivan and Transporter.
A extra succesful Walkinshaw-developed model of the second-generation Amarok dual-cab 4×4 ute can be scheduled for launch within the second half of 2026.
MORE: Discover the Volkswagen showroom
