ISTANBUL

German automaker Volkswagen Group announced on Tuesday plans to cut about 50,000 jobs in its Germany operations by 2030 as part of a major cost-reduction program.

In its annual report, the group — which owns Audi, Bugatti, Seat, Skoda and Porsche — said weakening global demand, rising production costs and growing competition are forcing it to revise its targets.

Most of the cuts will come from the core Volkswagen passenger cars division, where about 35,000 jobs are expected to be eliminated. Audi plans to reduce around 7,500 positions by 2029, while Porsche aims to cut about 3,900 jobs, including temporary workers.

The company said the reductions will mainly be carried out through voluntary measures, such as early retirement and severance packages, rather than compulsory layoffs.

The job cuts form part of a broader €15 billion ($17.49 billion) cost-saving program, which will also affect the group’s luxury brands and software subsidiary Cariad.

Volkswagen CEO Oliver Blume said the company is facing mounting pressure from Chinese electric vehicle manufacturers, US tariffs and high production costs.

“In the European market, we are increasingly facing price competition from Chinese manufacturers. This is a strong motivation for us to work much more intensively on the cost side," Blume said.

Operating profit plunges

Volkswagen Group’s operating profit fell sharply in 2025, reflecting the impact of US tariffs, intense competition in China and strategic changes at Porsche.

Revenue slipped 0.8% to €322 billion, while operating profit dropped 54% to €8.9 billion. Net profit fell 44.3% to €6.9 billion, with the profit margin declining to 2.8% from 5.9% a year earlier.

Vehicle deliveries edged down 0.2% to 9.02 million units, while deliveries in China fell 6% amid stronger competition from local manufacturers.