Volkswagen Group is expanding layoffs and production cuts to achieve €6 billion in net annual savings by 2030. These measures belong to a broader restructuring plan targeting declining profits and intensified competition.
CEO Oliver Blume identified aggressive price competition from Chinese electric vehicle manufacturers as a primary driver. Geopolitical tensions, rising energy costs, and inflation have further offset previous cost-reduction initiatives.
The company reported a sharp decline in both operating and net profits for 2025. This announcement precedes Volkswagen’s upcoming annual general meeting.