Volkswagen has greenlit a plan to eliminate an additional 50,000 jobs, marking the most significant restructuring in the German automotive giant’s nearly 90-year history. This latest reduction brings the company’s total projected job losses to 100,000 by 2030, following an initial announcement in March.
Chief Executive Oliver Blume described the decision as a “strong signal” for the firm’s future, emphasizing that the company is “taking responsibility for our entire workforce.” The move comes as the manufacturer faces a “crisis situation” characterized by declining profits, particularly in the Chinese market, and increased competition from aggressive rivals like BYD.
To maintain competitiveness amidst rapid technological shifts and changing consumer demand, the company stated that a “fundamental adjustment of the global workforce capability is necessary.” This reduction will encompass approximately 50,000 positions, including various management roles.
The company is currently reviewing operations at facilities in Emden, Zwickau, Hanover, and Neckarsulm, where production capacity has outpaced demand. Management noted that they are actively assessing “alternative uses for these plants.”
Beyond workforce changes, Volkswagen plans to streamline its product lineup by 2035, aiming to reduce the number of models produced by 50% and cut the complexity of its offerings by 75%. The strategy involves prioritizing “most compelling vehicles” to improve efficiency and lower costs.
As of 2025, the group—which includes Audi, Porsche, Skoda, Seat, Bentley, and Lamborghini—employed over 660,000 people globally. Christianne Benner, president of the industrial union IG Metall and deputy chair of the supervisory board, noted that the company had “fought hard for good solutions” to navigate the current downturn.
Financial performance has been impacted by falling sales in China and the United States, the latter exacerbated by tariffs introduced under the administration of President Donald Trump. Meanwhile, Chinese manufacturers have gained ground by leveraging lower production costs and advanced technology.
Despite the austerity measures, investor sentiment appeared positive, with shares in the company rising by approximately 7% in Frankfurt on Friday morning. The report also notes that the board of German car giant Volkswagen has approved a plan to cut another 50,000 jobs as part of the biggest restructuring in the group’s almost nine-decade history. The report also notes that blume said in July that the firm was looking to make the additional cuts. The report also notes that especially from Chinese brands, the Golf-maker has been hit by a drop in profits due to falling sales and fierce competition.
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