Volkswagen has already agreed to reduce about 50,000 positions since late 2024, with agreements covering 37,000 workers so far|farmdevil|CC BY-NC-SA 2.0
German automaker Volkswagen has approved its biggest restructuring plan in the company’s 89-year history, preparing to cut 50,000 more jobs by the end of 2030.
The latest plan could bring its total workforce reduction to roughly 100,000 by the end of the decade. Volkswagen currently employs more than 650,000 people worldwide and is Europe’s largest automaker.
The move comes as Volkswagen tries to control costs and struggles to compete with cheaper Chinese cars, particularly electric vehicles. It is also battling rising energy costs and heavy spending on its own EV transition.
It has already agreed to eliminate about 50,000 positions since late 2024, with agreements covering 37,000 workers so far.
Volkswagen says it has more factory capacity than needed. Four German plants — in Emden, Hanover, Zwickau and Neckarsulm — face an uncertain future after 2030. The company is exploring alternative uses for some facilities, including defense-related production.
Volkswagen also plans to reduce its vehicle lineup by as much as half and lower annual production targets to about 9 million cars.
Chief Executive Oliver Blume says the company must urgently close its cost gap with competitors, with Volkswagen’s costs still around 30% higher than comparable rivals.
Investors welcomed the plan, sending Volkswagen shares up 7.9% after the announcement.