Berlin: 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.

According to Anadolu Agency, 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 stated that the reductions will mainly be carried out through voluntary measures, such as early retirement and severance packages, rather than compulsory layoffs.

The job cuts are 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 highlighted the 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.

Volkswagen Group's financial performance has also been affected, with operating profit plunging sharply in 2025. 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, with deliveries in China falling 6% amid stronger competition from local manufacturers.