Volkswagen Prepares for New Round of 50,000 Job Cuts
The Volkswagen Group’s supervisory board has endorsed a sweeping restructuring plan that includes 50,000 additional layoffs, a significant reduction in the number of models, and a scaled-back global manufacturing footprint, according to German media reports.
This measure comes on top of a 50,000-job cut announced two years ago, meaning the German automotive giant will have eliminated a total of 100,000 jobs by the end of the decade—a move that is shaping up to be the largest restructuring ever seen in the industry.
The restructuring plan, called “Future Plan 2030” and presented by CEO Oliver Blume, was unanimously approved during a meeting in Wolfsburg after months of resistance from the unions.
Volkswagen did not provide details on the timeline for the workforce reduction or how the layoffs will be distributed across its regions and brands—which also include Audi, Bentley, Porsche, and Skoda—but did indicate that management positions would be included.
“It is essential to systematically align the workforce with economic realities,” the group said when announcing the plan, whose 50,000 additional layoffs represent approximately 8% of the group’s global workforce as of the end of last year.
Volkswagen also announced that it will reduce its equity stakes and model lineup by approximately 50% by 2035.
To that end, “the portfolio of holdings and businesses will be rigorously evaluated to retain only those with a clear strategic and financial contribution to the core business,” the company stated.
The automaker added that non-strategic activities will be “divested” or restructured, meaning “the real estate portfolio will also be reviewed,” which opens the possibility of closing or selling assembly plants.
Although no further details were provided on where or when the cuts would occur, Blume has previously stated that half of the savings would come from Germany, leading experts to estimate that approximately 25,000 jobs will be eliminated in local operations.
