Automotive Giant to Cut 50,000 Jobs by 2030

The global automotive industry is undergoing a major transformation phase. The transition to electric vehicles, production digitalisation, and intensifying global competition have prompted numerous automobile manufacturers to undertake extensive business restructuring.

One significant consequence is a wave of redundancies now occurring across various global automotive companies. German automotive giant Volkswagen has become one of the companies taking major efficiency measures.

The company has announced plans to reduce tens of thousands of workers in Germany over the coming years, as part of a strategy to suppress operational costs and adapt to changes in the global automotive market.

Volkswagen plans to cut approximately 50,000 jobs in Germany by 2030. This figure is significantly higher than the previous plan targeting a reduction of around 35,000 workers that had been agreed with the trade union at the end of 2024.

This drastic step was taken after the company’s financial performance weakened. In 2025, Volkswagen’s net profit totalled €6.9 billion, equivalent to approximately Rp116.61 trillion at an exchange rate of Rp16,900 per euro. This figure represents a 44 per cent decline compared to the previous year and constitutes the company’s worst result since the diesel engine scandal in 2015.

Volkswagen CEO Oliver Blume stated that the company is expanding its cost-saving programme to maintain competitive advantage in the future. “In total, approximately 50,000 jobs will be cut within the Volkswagen Group in Germany by 2030,” he said.

“As a result of collective agreements and measures to reduce the workforce, we successfully achieved cost savings of approximately one billion euros in the 2025 financial year, according to plan. We are on track to achieve our target of net annual cost savings of more than six billion euros at group level by 2030,” he added.

Throughout the 2025 financial year, the company achieved cost savings of approximately one billion euros, equivalent to Rp16.9 trillion, through various efficiency measures. Volkswagen is targeting net annual cost savings of more than six billion euros, equivalent to approximately Rp101.4 trillion, at group level by 2030.

This efficiency programme will also be implemented across several key Volkswagen subsidiaries. Premium car manufacturer Audi and Porsche, as well as software development unit CARIAD, are reported to be undertaking cost reduction measures as part of the company’s strategy to adapt to changes in the global automotive industry.