Volkswagen's profit is halved, and it slashes 50,000 jobs aggressively to cut costs.

Profits have been cut in half, and Volkswagen is once again making internal cuts.

According to CheDongXi on March 11th, local time on the 10th, Volkswagen Group (hereinafter referred to as Volkswagen Group) released its 2025 performance report.

Specifically, Volkswagen Group's full - year revenue in 2025 was 321.91 billion euros (approximately 2.565204 trillion yuan), a year - on - year decrease of 0.8%. The operating profit was 8.868 billion euros (approximately 70.666 billion yuan), a year - on - year plunge of 53.5%. The after - tax profit decreased by 5.49 billion euros (approximately 43.748 billion yuan) to 6.904 billion euros (approximately 55.016 billion yuan), a year - on - year decrease of 44%, hitting the lowest level since 2016.

Volkswagen Group's 2025 performance

According to multiple foreign media reports, Volkswagen Group CEO Oliver Blume said in a letter to the company's shareholders: "By 2030, Volkswagen Group expects to cut approximately 50,000 jobs."

Foreign media reports that Volkswagen Group will cut 50,000 jobs

This is an increase of 15,000 people compared to the agreement reached between Volkswagen Group and the union at the end of 2024 to cut 35,000 jobs. It is reported that the new layoffs will mainly involve Audi, Porsche, and CARIAD, a software subsidiary of Volkswagen Group.

At the performance press conference, Volkswagen Group's management clearly stated that cost reduction and efficiency improvement, as well as in - depth development of regional markets, will become the core of future development. As its largest single market in the world, China is highly expected for transformation and breakthrough.

01. Cut 50,000 people by 2030, after - tax profit decreased by 44% year - on - year last year

Volkswagen Group's announced layoff plan this time is a core measure to cope with global business challenges and implement the strategy of cost reduction and efficiency improvement.

Volkswagen Group CFO and COO Arno Antlitz even directly said: "Only by continuing to vigorously cut costs, giving full play to the group's synergy, and reducing redundancy to sustainably improve profitability can we achieve our goals. This is exactly the focus of our work in the next few months."

Volkswagen Group CFO and COO Arno Antlitz

In 2025, Volkswagen Group was in a complex environment of geopolitical tensions, increased US tariffs, and intense competition in the global automotive market. Although it launched 30 new models throughout the year and made phased progress in the restructuring, the management still judged the operating profit margin as "insufficient".

Behind the layoffs is Volkswagen Group's pressured performance in 2025, especially the significant decline in the profit side, which has become the direct reason for promoting the implementation of the layoff plan.

From the core data, Volkswagen Group achieved sales revenue of 321.913 billion euros (approximately 2.565204 trillion yuan) in 2025, a decrease of 274.3 million euros (approximately 21.858 billion yuan) compared with 324.656 billion euros (approximately 2.587086 trillion yuan) in 2024, a slight year - on - year decrease of 0.8%.

Volkswagen Group's 2025 performance

However, the performance on the profit side is not optimistic. Volkswagen Group's full - year operating profit in 2025 was only 8.868 billion euros (approximately 70.666 billion yuan), a decrease of 10.192 billion euros (approximately 81.217 billion yuan) compared with 19.06 billion euros (approximately 151.883 billion yuan) in 2024, a year - on - year plunge of 53.5%; the after - tax profit decreased by 5.49 billion euros (approximately 43.748 billion yuan) to 6.904 billion euros (approximately 55.016 billion yuan), a year - on - year decrease of 44%, hitting the lowest level since 2016.

In terms of sales volume, Volkswagen Group's global sales volume in 2025 was 8.984 million vehicles, a decrease of 43,000 vehicles compared with 2024, a year - on - year decrease of 0.5%. Among them, the sales volume in the European market increased by 4.5%, and in its "home base" Germany, it increased by 5.6%. The sales volume in the South American market increased significantly by 11.6%, while the sales volume in the North American market decreased by 10.4% due to the impact of tariffs.

Volkswagen Group's 2025 sales volume

02. Sales volume in the Chinese market decreased by 8% year - on - year, more than 20 new models will be launched this year

As Volkswagen Group's largest single market in the world, the performance in the Chinese market has become a major pain point for Volkswagen Group's performance in 2025 and also the core position of its strategic layout in 2026.

Data shows that in 2025, the operating profit contribution of Volkswagen Group's associated/joint - venture enterprises in China accounted for by the equity method decreased from 1.742 billion euros (approximately 13.881 billion yuan) in 2024 to 958 million euros (approximately 7.634 billion yuan) in 2025, a decrease of 784 million euros (approximately 6.247 billion yuan), a year - on - year decrease of approximately 45%.

Operating profit of Volkswagen Group's associated/joint - venture enterprises in China in 2025

In terms of sales volume, Volkswagen Group's sales volume in the Chinese market in 2025 was 2.694 million vehicles, a decrease of 234,000 vehicles compared with 2024, a year - on - year decrease of 8%.

Volkswagen Group's 2025 sales volume

The sales volume of pure - electric models declined particularly seriously. While the overall sales volume of Volkswagen Group's pure - electric models increased by 32% year - on - year, the sales volume in the Chinese market decreased by 44.3% year - on - year.

Volkswagen Group's 2025 pure - electric vehicle sales volume

The sluggish performance in the Chinese market not only directly dragged down Volkswagen Group's overall performance but also made Volkswagen Group realize that the speed of localization and transformation in China must be further improved.

In response to the challenges in the Chinese market, Volkswagen Group clearly proposed that in 2026, it will launch the "largest - ever new - energy product offensive" in China, with more than 20 new models. Volkswagen Group CEO Oliver Blume also said that "more innovative models will be launched in the vehicle offensive in the Chinese market."

Volkswagen Group CEO Oliver Blume

Currently, several new models developed locally in China under Volkswagen Group have been exposed. It can be seen that these models are more in line with the preferences of Chinese consumers and are deeply integrated with local intelligent technologies in China.

Ralf Brandstaetter, Chairman and CEO of Volkswagen Group (China), posted on social media today, mentioning that the ID. ERA 9X and YuZhong 08 are representative heavy - weight models in Volkswagen's offensive of more than 20 new cars.

Ralf Brandstaetter posted on social media

SAIC Volkswagen's ID.ERA 9X has been previously announced by the Ministry of Industry and Information Technology. It is a large 6 - seat SUV with a length of 5,207mm and a wheelbase of 3,070mm, and it also uses an extended - range power form.

Appearance of Volkswagen ID.ERA 9X

SAIC Volkswagen officially posted on its social media account that the CLTC pure - electric range of the Volkswagen ID.ERA 9X will exceed 400km.

SAIC Volkswagen posted to introduce the Volkswagen ID.ERA 9X

SAIC Volkswagen has also officially announced that it will hold an IDERA technology press conference on March 16th, and more information related to the ID.ERA 9X will be revealed at that time.

SAIC Volkswagen will hold an IDERA technology press conference

Volkswagen Anhui and the YuZhong brand also released their 2026 new - product plan, which shows that the cooperation model between Volkswagen and XPeng Motors, the YuZhong 08, will be launched in the first quarter.