Volkswagen is expected to slash 50,000 jobs by 2030, after the German automaker announced its lowest yearly profits since 2016.

According to the Guardian, VW CEO Oliver Blume told shareholders that the company's post-tax profits fell by roughly 54% year-over-year in 2025, as it struggled with Trump administration tariffs, increased competition from China, and added restructuring costs stemming its shift away from electric vehicles for its Porsche brand, which saw its own operating profits fall by 98%.

"We are operating in a fundamentally different environment," Blume said.

Blume also warned that VW could see additional impacts from the ongoing conflict in Iran, which has sent oil prices skyrocketing and created even more uncertainty for global economies. And while the company's supply chains have not yet been directly affected, the company voiced concerns that the war could still drive down demand for its luxury cars in the Middle East.

Volkswagen's struggles over the last year have been well-publicized, with the automaker reporting its first quarterly loss in five years in the third quarter of 2025. U.S. tariffs alone cost VW nearly $6 billion last year, while the decision to move away from its all-electric strategy at Porsche led to an additional $5.4 billion hit.