Volkswagen approves plan to cut another 50,000 jobs
German car giant's total job cuts to reach 100,000 by 2030 in its biggest restructuring ever.
Quick Look
- Volkswagen's board approved cutting another 50,000 jobs, bringing total planned cuts to 100,000 by 2030.
- The historic restructuring aims to tackle falling profits, fierce Chinese EV competition, and shifting market demand.
AI-generated summary
Why It Matters
Volkswagen faces falling sales, lower profits, and increased competition from Chinese EV brands.
The board of German car giant Volkswagen has approved a plan to cut another 50,000 jobs as part of a sweeping turnaround programme. It brings the total number of roles the company plans to shed by 2030 to 100,000.
The group - which includes Audi, Porsche, Skoda as well as the VW brand - said in March that it would cut 50,000 roles by the end of the decade.
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.
Blume said in July that the firm was looking to make the additional cuts.
The Beetle-maker has been hit by a drop in profits due to falling sales and fierce competition, especially from Chinese brands.
VW will also prioritise the "most compelling vehicles" and make more of each model, which will help lower costs, it said.
A "fundamental adjustment of the global workforce capability is necessary" to safeguard the competitiveness of the company, which faces shifting demand and technological change.
It added "a Group-wide workforce adjustment of approximately 50,000 positions - including management roles - will be necessary."
The company is also considering the future of its Emden, Zwickau, Hanover and Neckarsulm plants, where it has said production capacity exceeds demand.
"Alternative uses for these plants are being assessed," it said.
The restructuring marks the biggest in VW's almost nine-decade history.
As of 2025, VW employed more than 660,000 people worldwide. Its brands also include Seat, Bentley and Lamborghini.
Christianne Benner - the 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".
VW's profits have fallen sharply in recent years, hit by falling sales in China, which was once one of its biggest markets.
Sales have also fallen in the US, partly due to the impact of tariffs on car imports that were introduced by President Donald Trump's administration.
Chinese carmakers have been expanding aggressively as they roll out new technologies while benefiting from lower production costs than their rivals.
In recent years, firms like BYD have seen their sales rise sharply in markets including the UK, European Union and South East Asia.
Open Questions
- Which specific plants might face closures?
- How will unions react to further negotiations?
