Volkswagen board approves plan to cut 100,000 jobs

The board of Volkswagen, the German car manufacturer, has approved a plan to eliminate an additional 50,000 jobs as part of a comprehensive turnaround program. This brings the total number of positions the company intends to eliminate by 2030 to 100,000. This move was announced in March, with the company initially pledging to cut 50,000 roles by the end of the decade.

Speaking on Thursday, VW's CEO, Oliver Blume, emphasized that the decision demonstrates the company's commitment to addressing the well-being of its entire workforce. Earlier in July, Blume had stated that the firm was prepared to make the additional cuts.

The German automaker has been grappling with declining profits due to reduced sales and intense competition, particularly from Chinese automobile manufacturers. To counter these challenges, VW plans to focus on producing the most desirable vehicles and increasing the output of each model, which will help reduce costs. The company also recognizes the need for a fundamental restructuring of its global workforce to maintain competitiveness in the face of shifting demand and technological advancements. This includes approximately 50,000 positions, encompassing management roles, across the group.

VW is also exploring alternative uses for its plants in Emden, Zwickau, Hanover, and Neckarsulm, as production capacity exceeds demand at these facilities. The restructuring marks the largest in VW's nearly nine-decade history. As of 2025, the company employed over 660,000 people worldwide, with brands that include Audi, Porsche, Skoda, Seat, Bentley, and Lamborghini.

Christianne Benner, president of Europe's largest industrial union IG Metall and deputy chair of VW's Supervisory Board, acknowledged that the carmaker had fought diligently to find appropriate solutions to tackle the crisis situation.