Key Points
- Volkswagen Group’s 2025 operating profit plunged 53.5% to its lowest since 2016.
- The company will cut 50,000 jobs in Germany by 2030 across all brands.
- Higher U.S. tariffs have delayed VW’s 10% U.S. market share goal.
The Volkswagen Group today released fourth-quarter and full-year 2025 financial results, and two things stand out more than anything. The operating profit has plunged 53.5% to €8.9 billion ($10.35 billion) compared to 2024, the lowest level since 2016 when the Dieselgate scandal was in full swing.
Europe’s largest carmaker said U.S. tariffs, intense competition from China, and high restructuring costs from the realignment of its EV strategy (especially Porsche’s) are the main causes for the sharp profit decline.
That’s 15,000 More Jobs Cuts Than Originally Planned
While the profit drop is massive, there’s another number that shocks even more. The company announced plans to cut 50,000 jobs in Germany by 2030 across all brands, including Audi and Porsche. In a letter to shareholders, VW Group CEO Oliver Blume said the cuts are necessary to ensure sustainable growth and profitability.
“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Blume said. “As a result of collective bargaining agreements and downsizing measures, we managed to achieve cost savings of around €1 billion in fiscal year 2025 as planned. We are on course to meet our goal of achieving net annual cost savings of more than €6 billion across the Group by 2030,” he added.
The automaker had already agreed with unions to cut more than 35,000 jobs in Germany “in a socially responsible manner” by 2030, estimating savings of around €15 billion ($17.5 billion) from this. The new announcement adds 15,000 job cuts on top of the original plan.
While Volkswagen expects a recovery in 2026, its finance chief noted that it must focus on significantly cutting costs. Arno Antlitz warned that the automaker’s profit margin of 4.6% is “not sufficient in the long run,” noting that further cost-cutting is needed.
“We can only realize this if we continue to rigorously reduce costs, leverage Group synergies, reduce complexity and thus sustainably increase profitability. That is what we will focus on in the coming months,” he said.
VW Pushes Back Goal to Reach 10% U.S. Market Share
Volkswagen in particular and German carmakers in general have been hit by a decline in demand for their cars in China, where VW Group deliveries dropped 6% in 2025. On top of that, Chinese carmakers have increased their market share in Europe to a record 11% last year, heating up competition for sales.
Another big headache has been U.S. President Donald Trump’s decision to impose 25% tariffs on car imports, which has made life very difficult for German carmakers in the USA; VW Group deliveries in North America dropped 12% in 2025.
This will have a direct consequence on VW Group’s longstanding goal of reaching 10% market share in the United States. According to CEO Oliver Blume, that target has now “moved further into the future” due to geopolitical headwinds, Automotive News reports. The automaker currently has a 4% market share in the country.
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