Volkswagen has approved plans to cut about 50,000 more jobs worldwide, potentially doubling planned reductions to 100,000 as it overhauls models, factories and management
Volkswagen plans to cut an additional 50,000 jobs worldwide, potentially bringing the total planned workforce reduction to around 100,000.
The overhaul, part of a "Future Plan 2030," was prompted by rising costs, excess capacity, and increased competition, and includes a review of the future of four German plants.
As part of the restructuring, the company will also streamline its product line by cutting its vehicle model range by approximately 50%.
Volkswagen Group has approved plans to eliminate approximately 50,000 additional positions worldwide as part of the most extensive restructuring in its nearly 90-year history.
The additional reductions would come on top of an existing programme covering roughly 50,000 positions by 2030, potentially bringing the group’s total planned workforce reduction to around 100,000.
The cuts have not all taken place in 2026. Volkswagen has also yet to disclose when the additional reductions will begin or how they will be distributed among its brands and regions.
Four German plants face an uncertain future
The group’s supervisory board approved the Future Plan 2030 in response to US tariffs, excess production capacity, rising costs in Germany, weak demand in China and intensifying competition from Chinese carmakers.
The plan includes reviewing the future of four group plants in Germany:
Emden
Zwickau
Hannover
Neckarsulm
Volkswagen acknowledged that competitive future production allocations could not currently be secured for the four sites on a staggered basis from 2031 to 2034. Alternative uses for the plants are therefore being assessed.
No final decision has been made to close the plants or permanently end production at them.
Automotive analyst Ferdinand Dudenhoeffer expected negotiations over the sites’ future to continue during the next 10 months.
“Some calm is returning, but we are still far from peace. In political terms, this could be called a ceasefire,” he said, adding that the agreement would allow the parties to refocus on the business.
Future Plan 2030 also calls for Volkswagen to streamline its model portfolio by around 50%, concentrating production on fewer models with higher sales volumes.
The reduction applies to the number of models offered rather than Volkswagen’s total vehicle production.
The group also intends to simplify its corporate structure and shorten decision-making processes as part of efforts to lower costs and improve competitiveness.
“This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce,” Volkswagen Group chief executive Oliver Blume said.
He added that the company also had responsibilities towards its partners and industrial employment worldwide.
The agreement followed weeks of difficult negotiations involving Volkswagen’s management, Porsche SE as its largest shareholder, labour representatives and the state of Lower Saxony.
A previously discussed proposal to separate Volkswagen’s passenger-car and components operations into independent companies is no longer part of the plan.
Volkswagen shares listed in Frankfurt closed 7.9% higher after the announcement, reflecting investor relief that an agreement had been reached without a more serious confrontation among the company’s major stakeholders.
