Automaker extends cuts due to Chinese competition, European stagnation and US tariffs
Volkswagen, Europe’s largest vehicle manufacturer, will eliminate 50,000 jobs in Germany by 2030. The German automaker announced the decision on Tuesday (10 March 2026), in Wolfsburg, the company’s headquarters. Chinese competition, stagnant demand in the European market and American tariffs were the main reasons to justify the job cuts.
The expansion of layoffs was communicated by CEO (Chief Executive Officer) Oliver Blume in a letter to shareholders, together with the company’s annual results. The restructuring affects the Volkswagen, Audi and Porsche brands, as well as the software subsidiary Cariad.
By the end of 2024, the automaker had reached an agreement with local unions to cut 35,000 jobs by 2030. The goal was to save US$17.475 billion annually. The number of vacancies that will be closed has increased to 50,000, more than scheduled, as part of plans to save 15 billion euros (91.10 billion reais) per year.
Performance by region
Sales in Europe and South America grew by 5% to 10%. North America recorded a 12% drop. The result was impacted by the tariffs imposed by Donald Trump.
In China, Volkswagen faced greater Asian competition. Sales fell 6% in the country that was the automaker’s main market.
Economy and projections
The Volkswagen Group has already saved 1 billion euros (6.04 billion reais) in 2025 with ongoing staff reductions. The company projects to achieve more than 6 billion euros (36.25 billion reais) in annual savings by 2030.
Until the end of 2026, the Wolfsburg-based group believes that the company’s profitability should remain under pressure. The factors are rising raw material costs, intense competition and geopolitical tensions that affect the outlook.
In China, once its main market, now in decline, the group hopes to recover lost ground by launching “the biggest product campaign in its history”. The strategy is to present new models designed specifically for the local market, designed for the Chinese market.
