Volkswagen Group had a tough year on profits and plans to cut 50,000 jobs in Germany by 2030 - a dramatic escalation of its cost-cutting program after net profit fell 44% to 6.9 billion euros in 2025, the carmaker's worst result since the diesel emissions scandal nearly a decade ago.
The announcement, made by CEO Oliver Blume in Wolfsburg on Tuesday, goes beyond the 35,000 job cuts the group had already agreed with unions by the end of 2024.
Revenue stagnated at around 322 billion euros, while operating profit almost halved to around 8.9 billion euros, according to Europe's largest carmaker.
Chief Financial Officer Arno Antlitz cited a "challenging environment" of geopolitical tensions, new trade barriers and intensifying competition, particularly from China.
Volkswagen shares rose nearly 3.7% in Frankfurt on Tuesday morning, buoyed by the broader market rally that followed Donald Trump's comments on sanctions on Iran and a possible end to the conflict.
In 2015, it was revealed that Volkswagen had installed software in millions of diesel vehicles designed to manipulate emissions tests, making the cars appear much cleaner than they were during testing - a scandal that "wiped billions" from the company's market value, sparked criminal prosecutions and cost the group over 30 billion euros in fines, settlements and recalls worldwide.
But the current situation is considered more serious than the 2015 scandal. /Telegrafi/
