Volkswagen Board Approves Additional 50,000 Job Cuts in Restructuring Plan

Volkswagen’s board has approved a new plan to eliminate an additional 50,000 positions, bringing the total workforce reductions projected by 2030 to 100,000.

The conglomerate, encompassing Audi, Porsche, Skoda and the Volkswagen brand, announced in March that it intends to reduce 50,000 jobs by the end of the decade.

Chief Executive Oliver Blume described the decision as a strong signal of the company’s commitment to its entire workforce.

Blume indicated in July that the firm intended to proceed with these additional reductions.

Volkswagen, the maker of the Golf, has experienced declining profits driven by reduced sales and intensified competition, particularly from Chinese manufacturers.

The company also announced that, by 2035, it will halve the number of models it produces and cut product complexity by three‑quarters.

Volkswagen will focus on its most compelling models and increase production volumes of each, aiming to lower costs.

A fundamental adjustment of the global workforce is necessary to preserve the company’s competitiveness amid changing demand and technological shifts.

It further noted that roughly 50,000 positions across the Group, including management roles, will need to be eliminated.

The firm is also evaluating the future of its Emden, Zwickau, Hanover and Neckarsulm plants, where capacity currently exceeds demand.

It said alternative uses for these facilities are being assessed.

The restructuring represents the largest overhaul in Volkswagen’s nearly nine‑decade history.

As of 2025, Volkswagen employed over 660,000 people globally, and its portfolio includes Seat, Bentley and Lamborghini.

Christianne Benner, president of IG Metall and deputy chair of Volkswagen’s Supervisory Board, said the carmaker has worked hard to find effective solutions to a crisis situation.

Volkswagen’s profits have declined sharply in recent years, largely due to falling sales in China, which was once a major market.

Sales have also dropped in the United States, partly because of tariffs on imported vehicles introduced during the Trump administration.

Chinese manufacturers have been expanding aggressively, launching new technologies while enjoying lower production costs than their rivals.

In recent years, companies such as BYD have experienced sharp sales growth in markets including the United Kingdom, the European Union and Southeast Asia.

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