Volkswagen to lay off 50,000 employees due to record profit decline

At the end of 2025, the group’s operating profit fell by more than half, Carscoops reports. In search of a way out, the company intends to take radical measures.

According to the published report, VW Group’s operating profit for the year amounted to €8.9 billion, which is 53% less than a year earlier and significantly lower than analysts’ forecasts. Revenue at the same time remained almost at the same level, decreasing slightly to €322 billion.

The company cites several reasons for the crisis that has hit the business. A key role was played by trade duties introduced by the US administration, which have already cost the concern billions of euros.

In addition, the Chinese direction is under serious pressure: although the Middle Kingdom remains the largest market for Volkswagen, local brands are rapidly gaining strength, making competition increasingly fierce.

To return to growth, Volkswagen is launching an austerity program. By 2030, the number of laid-off employees of the concern may reach 50 thousand.

Earlier it was reported that Omoda C5 and C7 received the right to sell in the Russian Federation under the Jeland brand.