Volkswagen has announced plans to slash 50,000 jobs before the end of the decade in a major cost-cutting exercise as it acknowledged a "challenging environment".
The German manufacturing giant recorded €321.9billion (£278.6billion) in sales revenue in 2025, which remained largely stable year-on-year.
Its operating profit declined from €19.1billion (£16.5billion) to €8.9billion (£7.7billion), which VW attributed to the impact of President Donald Trump's tariffs in the United States.
It also cited issues at Porsche, which announced that it would pause its transition to electric vehicles amid weak demand from its customer base.
The company said it was looking to reach a margin of between eight and 10 per cent in 2030, while also cutting 50,000 jobs in Germany.
Brands under the Volkswagen Group umbrella, including Audi, Porsche and Cariad software, have also launched cost-cutting measures.
The 50,000 job losses will affect the whole Group by the end of the decade, following intense discussions between the manufacturer and unions.
It was originally agreed in 2024 that it would slash the workforce by more than 35,000 and reduce costs by billions of euros a year.
More than 50,000 Volkswagen Group job losses will be seen across Germany by 2030
|REUTERS\
Commenting on the latest financial results, Oliver Blume, CEO of Volkswagen Group, said the brand remained "on track" despite global uncertainty.
He added: "We have demonstrated that our substance is robust and that our future-oriented programs are working.
"Supported by strong financial momentum at year-end, we further strengthened our company. After three intensive years of realignment within the Volkswagen Group, we are seeing tangible progress.
"At the same time, we are operating in a fundamentally different environment. We are therefore determined to continue to pursue the course we have set."
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Volkswagen lamented the impact of auto tariffs imposed by US President Donald Trump
| VOLKSWAGENSimilarly, Arno Antlitz, CFO and COO of Volkswagen Group, noted difficulties around the world, as well as stronger competition, particularly from Chinese brands entering the European market.
Despite this, VW Group managed to release 30 new models, as well as keep financial results relatively stable.
Mr Antlitz confirmed that it would continue to keep its internal combustion engine vehicles "technologically competitive", while also investing in electric vehicles.
He continued, saying: "These were important steps to further boost the Volkswagen Group’s resilience. But the operating margin of 4.6 per cent adjusted for restructuring is not sufficient in the long run.
"We can only realise this if we continue to rigorously reduce costs, leverage Group synergies, reduce complexity and thus sustainably increase profitability. This is what we will focus on in the coming months."
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