The Digester

Volkswagen to cut 50,000 jobs amid US tariffs and weak China sales

Mar 10th 2026

Europe's biggest automaker will slash 50,000 jobs as profits fall and global headwinds bite, with US tariffs and soft Chinese sales forcing a strategic reset that includes delayed EV plans at Porsche.

  • Volkswagen will cut 50,000 jobs across the group in Germany by the end of the decade.
  • Pre-tax profit dropped 54% to €8.9 billion, with the company citing US tariffs as a major cause.
  • Porsche's operating profit fell 98% to €90 million and its transition to electric models has been postponed due to weak demand.
  • The group is losing market share in China and has launched its largest product campaign there to try to recover customers.
  • CEO Oliver Blume said geopolitical tensions and higher energy costs could further hurt demand, especially for premium marques.

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