In brief
Volkswagen’s board has cleared a plan to eliminate another 50,000 jobs as a consequence of the company’s most extensive restructuring in its nine‑decade history. The move, announced on Thursday, will bring the total number of losses by 2030 to 100,000, doubling the earlier March decision. The automaker is also reviewing the future of four German plants and looking to streamline its model range, reducing the number of vehicles it produces by half by 2035 and cutting complexity by 75%. Chief executive Oliver Blume said the cuts are a "strong signal" and that the company is "taking responsibility for our entire workforce" as it confronts shifting demand and stiff competition from Chinese rivals.
Volkswagen’s board has approved a plan to cut an additional 50,000 jobs, the largest workforce reshuffle in its almost nine‑decade history.
The decision brings the total number of roles the German carmaker intends to shed by 2030 to 100,000, following an earlier announcement in March that it would cut 50,000 positions.
Volkswagen – which owns brands such as Audi, Porsche, Skoda, Seat, Bentley and Lamborghini – is also weighing the future of four German plants in Emden, Zwickau, Hanover and Neckarsulm where production capacity exceeds demand.
Chief Executive Oliver Blume said the cuts were a "strong signal" and a necessary "fundamental adjustment of the global workforce capability" to protect the company’s competitiveness.
Shares in the company jumped about 7% in Frankfurt on the morning the news was announced.
The group’s profitability has been hit by a fall in sales in China and the US, while Chinese makers are expanding aggressively with lower production costs.
Volkswagen plans to cut the number of models it produces by 50% and simplify its offering by 75% by 2035, focusing on the most compelling vehicles and increasing volumes of each to lower costs.
A strike‑like shake‑up of its workforce – including management roles – is expected to reduce the workforce by roughly 50,000 across the group.
The automaker is assessing alternative uses for the under‑used plants and is engaging with unions, including IG Metall’s president Christianne Benner, who said VW had fought hard for effective solutions amid the crisis.
