Volkswagen’s board has approved plans to cut another 50,000 jobs as part of the biggest restructuring in the group’s nearly nine-decade history, bringing the total number of roles the carmaker plans to shed by 2030 to 100,000.
The group — which includes Audi, Porsche, Skoda, and the VW brand — is also considering the future of four of its German plants as production capacity exceeds demand.
The move is a “strong signal” for the future of the firm, which is “taking responsibility for our entire workforce,” VW’s chief executive Oliver Blume said in a statement on Thursday.
Why the Cuts Are Happening
Volkswagen has been hit by a drop in profits due to falling sales and fierce competition, especially from Chinese brands. Sales have also fallen in the US, partly due to the impact of tariffs on car imports introduced by the Trump administration.
The company said a “fundamental adjustment of the global workforce capability is necessary” to safeguard its competitiveness in the face of shifting demand and technological change.
As of 2025, VW employed more than 660,000 people worldwide. Its brands also include Seat, Bentley, and Lamborghini.
The Restructuring Plan
The firm also said that by 2035 it would:
- Cut the number of models it produces by 50%
- Reduce the complexity of its offering by 75%
- Prioritize the “most compelling vehicles” to lower costs
The company is weighing options for operations in Emden, Zwickau, Hanover, and Neckarsulm, where it has said production capacity exceeds demand. “Alternative uses for these plants are being assessed,” it said.
The Reaction
Shares in the company were up by around 7% in Frankfurt on Friday morning, signaling investor approval of the restructuring plan
Christianne Benner, president of Europe’s largest industrial union IG Metall and deputy chair of VW’s Supervisory Board, said the carmaker had “fought hard for good solutions” to address a “crisis situation.”
The Bottom Line
Volkswagen’s board has approved plans to cut 50,000 more jobs, bringing the total to 100,000 by 2030. The German car giant is facing falling sales, fierce competition from Chinese brands, and US tariffs. The company is also considering the future of four German plants as part of the biggest restructuring in its history. Shares rose 7% following the announcement.
