Overview
- Operating profit fell 53% to €8.9 billion in 2025 and earnings after tax dropped 44% to €6.9 billion, with revenue roughly flat at about €322 billion.
- The larger workforce reduction expands a 2024 agreement for 35,000 cuts, adding measures at Audi, Porsche and software unit Cariad to reach roughly 50,000 in Germany.
- Volkswagen says the cuts will follow collective agreements using natural attrition, early retirement and voluntary severance, with plant closures constrained by the Zukunft Volkswagen pact.
- The group guides for 2026 revenue growth of 0%–3% and an operating margin of 4%–5.5% as it pursues deeper cost savings and software/platform partnerships.
- Executives highlighted billions in costs from U.S. tariffs, intensified competition and weaker EV demand in China, and significant one‑off charges tied to Porsche’s strategy shift.