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Volkswagen suffers another drop in profits, warns of 50 thousand layoffs

2026-03-11 22:56:29Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Volkswagen suffers another drop in profits, warns of 50 thousand layoffs

Volkswagen has recorded a new decline in profits, reducing its operating margin to its lowest levels since the dark period of the Dieselgate scandal.

In 2025, operating profit has halved, reaching 8.9 billion euros compared to the previous year. As a result, the largest European car manufacturer has announced 50 thousand layoffs by 2030, writes La Repubblica.

While last year there were 35,000 layoffs, mostly at the VW brand. This time the layoffs will also be spread to Audi, Porsche and software maker Cariad. CEO Oliver Blume has described the plan as a “transformational plan” of savings that will affect every sector of the company.

One of the main factors that continues to weigh on Volkswagen is China. After years of profits of around 4-5 billion euros, in 2025 they fell below one billion, reaching 958 million euros. Metzler analyst Pal Skirta commented that “the key test for VW will be in 2027, when it will be understood whether the new brand offensive can regain market share in China.”

For this year, Volkswagen plans to introduce 20 new models, with hopes mainly on the new electric Polo.

Volkswagen's profit decline has been exacerbated by the high costs of Porsche's conversion to electric vehicles, which cost 5 billion euros. The luxury brand's operating profit fell to 90 million euros, from 5.3 billion euros last year. Another factor is US tariff policy, and now the conflict in the Middle East is also adding to the problem.

Blume noted that this is an important area for the group's premium brands Porsche, Audi and Lamborghini and that the war in Iran is expected to have an impact here as well, although it is still too early to assess exactly. Last year, luxury car exports to Africa and the Middle East rose by 10%, but the 421,000 vehicles sold there accounted for only 5% of the total.


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