Volkswagen to Cut 100,000 Additional Jobs by 2030
German automotive giant Volkswagen has approved plans for an additional 50,000 layoffs as part of a comprehensive restructuring program.
German automotive giant Volkswagen has approved a comprehensive restructuring plan that envisions the layoff of a total of 100,000 employees by 2030, driven by declining profitability and rising competitive pressures.
Restructuring Program
The Volkswagen management board has approved a comprehensive transformation program that includes cutting an additional 50,000 positions to secure the company's future. Having announced the layoff of tens of thousands of employees in March, the group aims to eliminate a total of 100,000 roles by 2030 with this latest decision.
Falling Sales and Chinese Competition
The Golf manufacturer is going through a difficult period due to declining sales, intense competition from Chinese brands, and a sharp drop in profits. While sales in China, one of the company's largest markets, have declined, the negative impacts of import tariffs are being felt in the US market.
Reduction in Production Models
To maintain its competitiveness and reduce costs, the company plans to cut the number of models it produces by 50 percent by 2035. In addition, complexity in the product range will be reduced by 75 percent, and priority will be given to the most ambitious vehicles.
The Future of Factories
Because production capacity at the Emden, Zwickau, Hanover, and Neckarsulm plants exceeds demand, the future of these facilities is under review. The company announced that alternative uses for these factories are being examined.
Unions and Global Workforce
Employing more than 660,000 people globally as of 2025, Volkswagen's move represents the largest restructuring in its approximately nine-decade history. IG Metall leader and deputy supervisory board chair Christianne Benner stated that efforts are underway to find good solutions to the crisis situation.