Volkswagen Plans Up to 100,000 Global Job Cuts Amid Profit Slump

Volkswagen Group is planning to cut up to 100,000 jobs worldwide—double the number previously announced—as the German automotive giant seeks to reduce costs and improve profitability, Theo Leggett reported for BBC News.

Volkswagen plans major global workforce reductions as it restructures amid declining profits and weaker demand in China. (Photo: Volswagen Facebook)

The group, which owns the Volkswagen, Porsche, Audi, SEAT, and Škoda brands, had previously announced plans to eliminate around 50,000 positions in Germany by 2030.

The company has struggled with falling sales in key markets and increasing competition from Chinese automakers expanding into Europe.

In a widely circulated memo to employees, Chief Executive Officer Oliver Blume said Volkswagen's costs were about 20% higher than those of its competitors and that the company would need to reduce spending further.

Volkswagen's operating profit has declined sharply in recent years. It earned €22.6 billion (US$25.8 billion, £19.3 billion) in 2023, which fell to €19.1 billion in 2024 and dropped further to €8.9 billion in 2025.

The automaker has also been hit by declining sales in China, once one of its most profitable markets.

During the first half of 2026, Volkswagen's sales in China fell 26% compared with the same period a year earlier.