1 hr ago
Volkswagen Plans 50,000 More Job Cuts, Halves Model Portfolio
Volkswagen says it needs to make big changes because selling cars has become harder.
It plans to remove as many as 50,000 more jobs around the world.
Earlier plans already covered about 50,000 jobs, so the total could reach 100,000.
The company also wants to make fewer car models and fewer versions of each model.
Four German factories do not yet have confirmed production plans for the years 2031 to 2034.
Volkswagen says it will look for other uses for those factories instead of announcing immediate closures.
The company is facing stronger competition from carmakers in China and the cost of US tariffs.
Volkswagen hopes the changes will lower costs and improve profits by 2030.
Volkswagen approved a restructuring plan that could bring total group job cuts to about 100,000.
The company plans to halve its model range and reduce variants by roughly 75% by 2035.
Four German plants—Emden, Zwickau, Hanover and Neckarsulm—lack confirmed vehicle-production allocations for 2031-2034.
Volkswagen is targeting annual sales of 9 million vehicles and a 9% operating margin by 2030.
Chinese competition, weaker demand, excess European capacity and US tariffs are driving the restructuring.
- Who
- Volkswagen Group, its employees, management, employee representatives and the Lower Saxony government.
- What
- The company approved Future Plan 2030, including up to 50,000 additional job cuts and a halving of its model portfolio.
- Where
- The job reductions are global, while four German factories face uncertain production allocations.
- When
- The plan was approved on Thursday and reported on September 4, 2026; portfolio changes are planned by 2035.
- Why
- Volkswagen cited high costs, weaker demand in China and Europe, Chinese competition, excess European capacity and US tariffs.
Employees and Regional Stakeholders
Volkswagen Management
Responsibility for restructuring costs
Employees and Regional Stakeholders
Works council chair Daniela Cavallo said restructuring was necessary but argued that employees should not bear the entire cost.
Volkswagen Management
Volkswagen management presented job reductions, simpler management and business realignments as necessary to lower costs and restore profitability.
Future of German factories
Employees and Regional Stakeholders
Employee representatives and Lower Saxony officials emphasized the need for long-term solutions for affected production sites.
Volkswagen Management
Volkswagen said it had not identified competitive production allocations for four plants and would explore other potential uses rather than announce immediate closures.
Scope of the product range
Employees and Regional Stakeholders
The planned reduction could affect the variety of models and configurations available to customers and production sites.
Volkswagen Management
Volkswagen said halving the model range and reducing variants would simplify production, increase volumes per model and reduce costs.
Key facts
- Potential total job cuts
- About 100,000 across the Volkswagen Group, including roughly 50,000 already covered by earlier programmes.
- Model portfolio
- The model range is planned to be cut by half by 2035.
- Variant reduction
- Available variants and configurations are planned to fall by roughly 75% by 2035.
- Uncertain German sites
- Emden, Zwickau, Hanover and Neckarsulm lack identified production allocations for 2031-2034.
- 2030 targets
- Annual sales of 9 million vehicles and a 9% operating margin.
- First-half 2026 operating margin
- 3.8%, compared with 4.2% a year earlier.
- Estimated annual tariff impact
- US tariffs could reduce operating profit by around €5 billion.
Sources
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