Volkswagen disclosed a second wave of job reductions, planning to eliminate another 50,000 positions by 2030 after already cutting 50,000 roles since the end of 2024. The cuts will be complemented by salary reductions for about 4,000 senior managers and are part of a broader effort to save roughly €15 billion a year from 2030 onward.
The automaker’s earlier cost‑saving programme, launched before 2028, targets a 20% reduction in total expenses – equivalent to €60 billion annually – through measures such as trimming the model range, standardising components across brands, shortening development cycles by one‑third and slashing budgets for IT, services and marketing. Combined with the new initiatives, total operating costs could be about 25% lower after 2030.
VW continues to face structural challenges. Sales in China, once above four million units at the end of the 2010s, have fallen to 2.7 million, a drop of roughly one‑third, cutting Chinese earnings to a quarter of previous levels. High labour and energy costs in Germany, expensive electric‑vehicle transition spending and an excess production capacity of around 500,000 vehicles per year add further pressure.
Despite these headwinds, the announcement sparked a swift market reaction. The DAX‑listed preferred share, which had fallen to its lowest level since 2010, broke the €80 resistance line and rose more than 10% within a few days. The stock now trades with a price‑to‑earnings ratio near six, while earnings per share have halved to €13.31. Management projects a doubling of net profit by 2028, which analysts say could translate into a mid‑term share price doubling, with an additional short‑term upside of roughly 10% before the next technical hurdle at €90.
Leveraged products linked to the move are highlighted for risk‑tolerant investors. A three‑times‑leveraged call option (ISIN CH1577913333) would gain about 30% if VW reaches €90, a four‑times‑leveraged certificate (ISIN CH1579859435) could rise 40%, and a six‑times‑leveraged call (ISIN CH1582368580) promises roughly a 60% upside under the same price scenario.
