Volkswagen board clears 50,000 more job cuts by 2030 amid auto industry shift

Volkswagen's board has approved a plan to eliminate an additional 50,000 jobs by 2030, bringing the total planned job reductions to 100,000. The decision, announced on Thursday, is part of a comprehensive restructuring programme aimed at reducing costs and improving efficiency.

The German automaker's portfolio includes Audi, Porsche, Skoda, Seat, Bentley and Lamborghini, alongside the Volkswagen brand. Earlier this year, the company had said it would cut 50,000 roles by the end of the decade. Chief Executive Oliver Blume signalled in July that further cutbacks were under discussion.

Blume described the board's decision as a "strong signal" for the future of the group, stating that Volkswagen is "taking responsibility for our entire workforce." The company said the job reductions are necessary to sustain competitiveness in an environment of changing customer preferences and technological advancement.

Under the approved plan, Volkswagen will halve the number of vehicle models it produces by 2035 and reduce the complexity of its product portfolio by 75%. The company will focus on models with the strongest market appeal and produce larger volumes of each, which is expected to lower per-unit costs and simplify operations.

In a statement, Volkswagen said "a fundamental adjustment of the global workforce capability is necessary." It further noted that a group-wide workforce adjustment of about 50,000 positions, including management roles, would be required to support the restructuring.

The company is also reviewing its production sites in Emden, Zwickau, Hanover and Neckarsulm. Volkswagen said these plants have production capacity beyond current demand, and alternative uses for these facilities are being explored.

This restructuring is considered the largest in Volkswagen's nearly 90-year history. As of 2025, the company had more than 660,000 employees worldwide.

Christianne Benner, president of IG Metall, Europe's largest industrial union, and deputy chair of Volkswagen's supervisory board, acknowledged the difficulty of the situation. She said the company had "fought hard for good solutions" in response to what she termed a "crisis situation."

Volkswagen's financial performance has weakened in recent years. The company has seen sales drop in China, once its most important market, and has faced challenges in the United States, where tariffs on imported vehicles introduced by President Donald Trump's administration have affected demand.

Chinese carmakers like BYD are expanding their presence across Europe and Asia. With lower production costs and new electric vehicle technology, these manufacturers are intensifying competition for traditional automakers such as Volkswagen.

The global auto industry is going through a structural transition, with rising investments in electric mobility, digital services and autonomous driving technology. Manufacturers are under pressure to adapt quickly while managing high development costs.

The job cuts are expected to be implemented gradually until 2030. Volkswagen has not specified which plants or employee groups will be most affected, saying further details will be worked out in the coming months.