Volkswagen Confirms 19,000 Job Cuts in Germany by End of 2026 Amid Electrification Strain

Volkswagen Group is confronting its most severe structural challenge since the golden era of internal combustion engines. CEO Oliver Blume confirmed on June 18 that the group will cut approximately 19,000 jobs in Germany by the end of 2026—and has set a binding target to eliminate more than 28,000 German positions by 2030. Including Audi, Porsche, and software subsidiary CARIAD, total job cuts in Germany are expected to approach 50,000.

This decision was not made ad hoc. As early as December 2024, Volkswagen had already reached an agreement with German unions to reduce Volkswagen-brand jobs in Germany by 35,000 by 2030. The newly announced figures—19,000 and 28,000—represent quantified milestones along that roadmap.

Despite the scale of restructuring, Volkswagen emphasized that layoffs will primarily occur through natural attrition, early retirement, and voluntary departures—avoiding forced dismissals. The group also disclosed that, as of 2025, production costs at German plants have fallen by over 20%, saving roughly €1 billion—yet still far short of its €6 billion annual cost-reduction target for 2030.

Financial and market data reveal deeper strain: Volkswagen Group’s operating profit for 2025 stood at just €8.9 billion—nearly half the €19.1 billion recorded in 2024—with operating margin plunging to 2.8%. Global deliveries shrank from a designed capacity of 12 million units to 8.98 million, prompting the group to lower its long-term production target to 9 million units.

China presents especially acute pressure. Its China operations—which once contributed nearly 30% of group profits—saw profits tumble to €958 million in 2025; Q1 2026 deliveries fell 14.8% year-on-year, while pure EV sales totaled only 9,400 units—a staggering 63.8% drop year-on-year. Blume admitted: “Production costs in Germany are too high—and in China, we’re facing fierce competition from local new-energy vehicle brands.”

Industry observers note that Volkswagen’s current restructuring reflects not just a corporate crisis, but a broader industry-wide recalibration of cost structures and global footprints amid the electrification and intelligence wave. When even the “jewel of German industry” must sacrifice tens of thousands of jobs to secure transformation space, the depth and intensity of the automotive industry’s century-long upheaval have become undeniable.