Volkswagen board approves plan to cut another 50,000 jobs

The board of Volkswagen has approved a plan to cut an additional 50,000 jobs as part of the largest restructuring in the company's nearly 90-year history. This brings the total number of positions the automaker plans to eliminate by 2030 to 100,000, following an earlier announcement in March of 50,000 job cuts. The car company, which includes brands like Audi, Porsche, and Skoda, is also considering the future of four German plants.

Volkswagen CEO Oliver Blume described the move as a "strong signal" for the firm's commitment to its workforce. The company announced the additional job cuts in July, citing falling sales and intense competition, particularly from Chinese brands. By 2035, Volkswagen plans to reduce the number of models it produces by 50% and decrease the complexity of its offerings by 75%.

The company will focus on producing more of its most compelling vehicles to lower costs. A significant adjustment of the global workforce is necessary to maintain the company's competitiveness amid changing demand and technological advancements. Volkswagen is also evaluating alternative uses for its plants in Emden, Zwickau, Hanover, and Neckarsulm, where production capacity exceeds demand.

As of 2025, the company employs over 660,000 people worldwide, with brands including Seat, Bentley, and Lamborghini. The IG Metall union, representing Europe's largest industrial workforce, praised Volkswagen for seeking "good solutions" to address its "crisis situation." Volkswagen's profits have significantly declined in recent years, driven by falling sales in China and the US, as well as the impact of tariffs on car imports.

Chinese automakers have been rapidly expanding, leveraging new technologies and lower production costs.