The German Volkswagen Group plans to lay off 50,000 employees by 2030

The German automotive brand Volkswagen Group announced that due to a decline in profits to the lowest level since 2016, the company will cut 50,000 jobs in Germany by 2030.

AFP reported that Volkswagen's CEO, Blum, said in the company's annual report to shareholders on Tuesday (March 10th) that "the total number of jobs in Volkswagen's operations in Germany will decrease by approximately 50,000 by 2030."

This group, which owns 10 brands, has reached an agreement with the trade union by the end of 2024. It plans to cut 35,000 jobs by 2030, mainly in the brands with the same name, as part of its annual cost-saving plan of 15 billion euros.

Blum added that the new job cuts would come from the automotive brands Audi and Porsche, as well as the software subsidiary Cariad of Volkswagen.

Even before US President Trump imposed tariffs on non-US automakers last year, this largest European automaker had already suffered three blows: stagnant European market demand, high investment costs for electric vehicles, and a sharp decline in sales in the Chinese market.

The Volkswagen Group stated that its after-tax profit dropped by approximately 44% last year. Factors such as US tariffs, intense competition in the Chinese market, and the reorganization of Porsche all affected the performance. It was reported that the 6.9 billion euro profit was the lowest level since 2016.