Volkswagen’s supervisory board has approved a further plan to cut 50,000 jobs as part of what the German carmaker describes as its largest restructuring in almost nine decades.
The decision raises the total number of roles the group plans to remove by 2030 to 100,000, after Volkswagen said in March that it would eliminate 50,000 positions.
Restructuring Board Approval
The group, which includes Volkswagen, Audi, Porsche and Skoda, also said it is reviewing how its workforce and production capacity should change as markets shift and technology evolves.
In a statement on Thursday, chief executive Oliver Blume called the job cuts a “strong signal” for the company’s future, saying Volkswagen was “taking responsibility for our entire workforce”. Blume had previously said in July that the company was looking to make additional cuts.
Further Cuts Through 2030
Volkswagen said it would require a group-wide workforce adjustment of approximately 50,000 positions, including management roles. It said the changes are intended to safeguard competitiveness as demand shifts and the industry moves towards new technologies.
Shares in the company rose by about 7% in Frankfurt on Friday morning.
Model and Cost Changes
Alongside the staffing plan, Volkswagen said it intends by 2035 to cut the number of models it produces by 50% and reduce the complexity of its vehicle offering by 75%.
The company said it will prioritise the “most compelling vehicles” and produce more of each model, moves it expects will help lower costs.
Volkswagen added that a “fundamental adjustment” of global workforce capability is necessary to protect competitiveness.
German Plants Under Review
The carmaker is also considering the future of four German plants: Emden, Zwickau, Hanover and Neckarsulm. Volkswagen said in those locations production capacity exceeds demand.
“Alternative uses for these plants are being assessed,” the company said.
Profit Pressure and Competitive Threats
Volkswagen has been under pressure from falling profits after sales weakened and competition intensified, particularly from Chinese carmakers.
The firm has seen demand slide in China, where Volkswagen had previously sold large volumes. In the United States, sales have also fallen, partly because of tariffs on car imports introduced under Donald Trump’s administration.
Chinese manufacturers have expanded aggressively by rolling out new technologies and benefiting from lower production costs than competitors. In recent years, firms such as BYD have reported sharp sales growth in markets including the UK, the European Union and parts of South East Asia.
Workforce and Union Response
As of 2025, Volkswagen employed more than 660,000 people worldwide. Its brands also include Seat, Bentley and Lamborghini.
Christianne Benner, president of Europe’s largest industrial union IG Metall and deputy chair of Volkswagen’s Supervisory Board, said the company had “fought hard for good solutions” to tackle what she described as a “crisis situation”.
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5 September 2026
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