Volkswagen’s supervisory board unanimously approved a restructuring plan on Thursday that includes cutting an additional 50,000 positions globally, bringing the total number of jobs eliminated across the group to 100,000.
Volkswagen described the Future Plan 2030 as the most strategically consequential overhaul in the group’s history, built around 12 discrete initiatives designed to sharpen its competitive position and strengthen its financial results. Beyond the workforce reductions, the plan targets an operating margin of 9% by 2030 and calls for streamlining the group’s model portfolio by around 50% by 2035, the company said.
The plan also leaves the future of four German plants unresolved. Volkswagen acknowledged that its European capacity exceeds demand by more than 500,000 units and said it cannot guarantee viable production roles for its plants in Emden, Zwickau, Hanover, and Neckarsulm as their current manufacturing programs wind down between 2031 and 2034. Alternative uses for those plants are being assessed.
Volkswagen shares climbed 5.9% on Friday, reaching their highest level in eleven weeks.
Chief Executive Officer Oliver Blume said in a statement: “We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide. Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”
Daniela Cavallo, chairwoman of the Group and Central Works Council, said in a statement that the Future Plan “is a necessity to lead our Group successfully into the next decade — without placing the burden of that transformation solely on employees.”
The restructuring reflects compounding pressures on Volkswagen’s business. Reuters noted that the group’s operating margin contracted to 3.8% through the first half of the year, compared with a peak of 7.9% in 2022. Tariff expenses reached 2.9 billion euros for full-year 2025, according to CNBC. Competition from Chinese electric vehicle manufacturers has also eroded the group’s position, particularly in China, which was once its most profitable market.
Volkswagen had been moving toward this outcome for months. Blume warned in an internal memo that the automaker might need to cut an additional 50,000 jobs on top of the 50,000 already agreed, citing a 20% cost gap with comparable rivals. A union agreement reached in late 2024 had committed the company to eliminating around 50,000 positions by 2030, with departure agreements covering more than 28,000 employees across Volkswagen, Audi, Porsche, and software unit CARIAD already signed as of the company’s June annual general meeting.