Volkswagen Approves Biggest Restructuring in Its History: 100,000 Jobs at Risk

Volkswagen Group’s Supervisory Board has approved its Future Plan 2030, which includes around 50,000 additional workforce reductions worldwide.

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This comes on top of roughly 50,000 positions already planned to be reduced, taking the total potential workforce reduction under the company’s restructuring plans to around 100,000 positions.

The plan comes as the German automaker faces weak demand, excess production capacity, US tariffs and growing competition from Chinese manufacturers.

Workforce Reduction and Plant Review

According to Volkswagen, the additional workforce adjustment will include management positions. The company has not disclosed the timing of the new workforce reduction or how the positions will be distributed across its brands and regions.

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Also Read: Volkswagen Plans Biggest Job Cuts in Its History

Therefore, the 50,000 figure should not be treated as an immediate layoff number. Key workforce and operational measures include:

• Around 50,000 additional positions to be adjusted across the Group, including management roles.
• The future of four German plants — Emden, Zwickau, Hannover and Neckarsulm — is being reviewed.
• Volkswagen says it cannot currently guarantee production allocations for these sites for the 2031–2034 period.
• Alternative uses for the four locations are being assessed.

Volkswagen said its European factories currently have more than 500,000 units of excess capacity. The company is also looking at ways to simplify its Group structure and improve decision-making.

What It Means for Employees

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CEO Oliver Blume said the company is taking responsibility for its workforce, partners and industrial jobs worldwide. The Future Plan will also involve changes to Volkswagen’s business structure, investment portfolio and operations in major markets.

For HR teams, the plan points to a large-scale workforce restructuring involving not only manufacturing employees but also management roles.

The final impact on individual countries, brands, functions and employee groups will depend on implementation decisions that Volkswagen has not yet disclosed.

The company said the plan is a response to increasing global competition, changing customer demand and technological changes in the automotive industry.

Volkswagen will also focus on its North American and Chinese businesses while reviewing its wider portfolio of businesses and investments.