WOLFSBURG — Volkswagen Group has announced a major restructuring programme as the company confronts declining profitability and rising competition from Chinese electric-vehicle makers.
Europe’s largest carmaker said it plans to cut around 50,000 jobs in Germany by 2030, expanding earlier cost-reduction measures agreed with labour unions as part of a broader efficiency drive across its brands, including Audi, Porsche and the software unit Cariad.
The restructuring follows a difficult 2025 in which operating profit fell to about €8.9bn while revenue remained broadly flat at roughly €322bn, reflecting tariff pressures, rising costs linked to electrification, and weaker demand in key markets.
Volkswagen executives say the group must adapt to a rapidly shifting automotive landscape, particularly in China, the world’s largest car market, where local manufacturers such as BYD and other domestic EV producers are rapidly gaining market share.
Chief executive Oliver Blume said the company is pursuing deeper localisation strategies in China and accelerating product development to regain competitiveness while targeting a gradual recovery in profitability over the coming years.
Analysts say the restructuring underscores the scale of the transformation facing Europe’s legacy automakers as electrification, geopolitical tensions and Chinese technological advances reshape the global automotive industry.
