Volkswagen approves 50,000 more job cuts by 2030
Volkswagen's board has approved eliminating an additional 50,000 positions by 2030 as part of what the German automotive group describes as the most extensive restructuring programme in its 89-year history. Combined with 50,000 job cuts already agreed, the company will reduce its workforce by 100,000 positions over the next four years.
The Wolfsburg-based manufacturer, which operates brands including Audi, Porsche, Skoda and the VW marque, employs approximately 660,000 people worldwide. The company stated that a fundamental adjustment of its global workforce is necessary to maintain competitiveness, though it did not specify how the reductions would be distributed across brands and regions.
Market pressures drive restructuring
The overhaul comes as Volkswagen confronts severe challenges in key markets. In China, once the company's largest market, sales plummeted between 30 and 41 per cent in the second quarter of 2026 compared to the same period in 2025, representing some of the steepest declines ever recorded for German automakers in the country. Domestic Chinese manufacturers such as BYD have captured significant market share, with Chinese electric vehicle brands including BYD, Geely and Chery now accounting for almost 11 per cent of the European car market in May 2026, up from just under 3 per cent three years earlier.
In the United States, Volkswagen has been hit by President Donald Trump's 25 per cent tariffs on imported automobiles and automobile parts, imposed in March 2025 and implemented the following month. US passenger vehicle imports fell 21 per cent in the first six months of 2026 compared to the same period in 2024, before the tariffs took effect.
The company's financial performance reflects these market difficulties. Net profit for the second quarter of 2026 declined approximately 33 per cent to 1.54 billion euros compared to the same period in 2025.
Vehicle line-up reduction and plant closures
As part of the transformation programme, Volkswagen plans to halve its vehicle line-up by the end of the decade, focusing on what it calls the most compelling vehicles and producing larger volumes of each model to reduce costs.
The company is also reviewing the future of four German manufacturing facilities where production capacity significantly exceeds demand. The Emden plant, which employs more than 7,700 people and produces the ID.4, ID.7 and ID.7 Tourer models, is among those facing an uncertain future. The Zwickau facility, with around 8,000 employees building multiple electric vehicle models for VW, Audi and Cupra brands, has production capacity exceeding 300,000 vehicles annually but produced only around 212,000 vehicles in a recent year.
Chief executive Oliver Blume stated that no new models would be allocated to the Emden, Zwickau, Hanover and Neckarsulz plants unless costs can be brought down substantially.
Union and shareholder agreement
The restructuring plan received approval from both the company's board and its powerful employee representatives, averting a potential clash with unions and Lower Saxony, Volkswagen's second-largest shareholder. The Lower Saxony state government holds approximately 20 per cent of Volkswagen's voting rights and possesses the ability to block key decisions through special legal provisions.
Daniela Cavallo, the chief employee representative, acknowledged the plan as necessary for the company to succeed in the next decade, whilst emphasising that the associated undertakings should not fall solely on employees.
Blume characterised the agreement as a strong signal for the future of the Volkswagen Group, stating the company is taking responsibility for its entire workforce, partners and industrial jobs worldwide.
Shares in Volkswagen rose 7 per cent in early trading following the announcement. Tom Narayan, analyst at RBC Capital Markets, described the board and union approval as a positive surprise, noting the decision represents an important step towards making Volkswagen more cost-competitive with Chinese original equipment manufacturers aggressively expanding in Europe.
