On March 10, Volkswagen Group released its 2025 annual report and held an investor meeting. The annual report revealed that the group’s profit in 2025 had dropped to a new low in nine years, prompting several subsidiaries to initiate cost-control measures. By 2030, Volkswagen plans to cut approximately 50,000 jobs in Germany.
In the 2025 annual report, Volkswagen Group CEO Oliver Blume stated in a letter to investors that Audi, Porsche, and their software subsidiary CARIAD had reached comprehensive agreements and initiated their respective cost-control plans. The group aims to achieve cost savings of about 1 billion euros in the 2025 fiscal year through collective bargaining agreements and job cuts. The company is steadily progressing towards its goal of achieving annual net cost savings exceeding 6 billion euros by 2030.
Previously, Volkswagen had reached an agreement with the union to cut over 35,000 jobs from the VW core brand in Germany by 2030 in a “socially responsible manner” to streamline operations and enhance efficiency amid the transition to electric vehicles to ensure financial competitiveness.
According to the 2025 annual report, the additional job cuts will extend to Volkswagen’s high-end brands, including Audi, Porsche, and the software subsidiary CARIAD.
Volkswagen Group’s net profit in 2025 was 6.9 billion euros, down by approximately 44% compared to 12.39 billion euros in 2024. This marked the lowest profit for the group since 2017, achieved on the basis of realizing approximately 1 billion euros in cost savings.
Volkswagen’s net profit was 17.3 billion euros in 2023, decreasing to 12.39 billion euros in 2024.
As early as September 2024, Volkswagen Group had announced plans to restructure for survival due to declining sales, high costs, increasing sales of Chinese car manufacturers in Europe, and the ongoing process of automation impacting traditional car manufacturing.
In December 2024, Volkswagen Group reached a job-cutting plan with the employee council, aiming to cut up to 35,000 jobs by 2030 to save up to 4 billion euros (about 41.7 billion USD) in costs. The majority of the job cuts will be implemented through voluntary measures, including early retirement and severance packages, to minimize the impact on society.
The group’s Chief Operating Officer, Arno Antlitz, commented on Volkswagen’s overall performance in 2025, mentioning the geopolitical tensions, tariffs, and intense market competition. Despite the challenging environment, the company launched 30 new car models, made significant progress in the restructuring, generated a robust net cash flow, and maintained solid liquidity levels.
Volkswagen aims to achieve a global delivery volume of around 9 million vehicles in 2025, nearly matching the delivery volume of 2024. In the European market, Volkswagen’s performance in 2025 was exceptionally strong, with a market share expanding to 25% and a growth in deliveries of over 4%. This contrasted with market share declines in North America (-10%) and China (-8%). Volkswagen also saw significant growth in other regions, including a 12% increase in South America, a 9% increase in Asia excluding China, and a 10% growth in the Middle East/Africa region.
The competitive automotive market in China and tariffs in the United States were among the factors impacting performance. Blume mentioned adjusting operational strategies in the US and China in an open letter to investors.
In the US, Blume stated, “We are adjusting our business activities based on the rapidly changing competitive environment, specific customer needs, and the evolving tariff situation. We are enhancing the independence of our brands and seizing strategic opportunities in the rapidly growing segment of large SUVs and pickups with the electrification revival of the iconic Scout model.”
Regarding the Chinese market, Blume highlighted, “In China, we have increased our R&D speed by 30% and established a highly competitive cost basis. We will extend these experiences to other regions. The vehicle models developed in China are also enabling us to explore export opportunities in new markets.”