Archive · 4 Sep 2026
Volkswagen Approves Plan for 100,000 Jobs, Fewer Models
Volkswagen says it needs to make major changes because selling cars has become more difficult.
It plans to remove another 50,000 jobs around the world.
Earlier agreements already covered about 50,000 job reductions, so the total could reach 100,000 by 2030.
The company also wants to produce about half as many models and fewer versions of each model.
Four German factories do not yet have confirmed vehicle-production plans for 2031 to 2034.
Volkswagen says it is studying other uses for those factories, so immediate closures have not been definitively announced.
The company is facing weaker demand in China, competition from Chinese automakers, excess European capacity and US tariffs.
It hopes the changes will lower costs and improve profits by 2030.
Volkswagen approved an additional 50,000 global job cuts, potentially bringing planned reductions by 2030 to about 100,000.
The company plans to halve its model portfolio and reduce variants and configurations by roughly 75% by 2035.
Production plans for 2031-2034 remain unconfirmed at the Emden, Zwickau, Hanover and Neckarsulm plants.
Volkswagen targets annual sales of 9 million vehicles and a 9% operating margin by 2030.
The restructuring responds to weak demand, excess European capacity, US tariffs and intensifying Chinese competition.
- Who
- Volkswagen Group, its management, employees, unions, employee representatives, Porsche SE and the government of Lower Saxony.
- What
- The supervisory board approved the Future Plan 2030, including another 50,000 job cuts, a smaller model range and a review of four German plants.
- When
- The supervisory board approved the plan on Thursday; it was reported on September 4, 2026. Job reductions are planned by 2030, while portfolio changes are targeted by 2035.
- Where
- The job cuts would occur globally. The plants with uncertain production plans are in Emden, Zwickau, Hanover and Neckarsulm, Germany.
- Why
- Volkswagen cited intensifying competition, weaker demand, technological change, excess European capacity and the effect of US tariffs on profitability.
Employees and Regional Stakeholders
Volkswagen Management
Who should bear the restructuring burden?
Employees and Regional Stakeholders
Works council chair Daniela Cavallo said restructuring was necessary but argued that employees should not bear the entire cost. Unions and employee representatives negotiated for solutions during a crisis situation.
Volkswagen Management
Management said global workforce capacity must be fundamentally adjusted to match economic conditions and protect competitiveness.
Future of German plants
Employees and Regional Stakeholders
Employee representatives and Lower Saxony officials emphasized the need for long-term solutions for the affected production sites and industrial jobs.
Volkswagen Management
Volkswagen said it could not identify competitive production allocations for four plants and would assess alternative uses rather than definitively announce immediate closures.
Reducing the model range
Employees and Regional Stakeholders
A smaller range could reduce the variety of models and configurations available to customers and affect production sites linked to those vehicles.
Volkswagen Management
Volkswagen said fewer models and variants would simplify production, increase volumes per model, lower costs and strengthen economies of scale.
- Potential total job cuts
- About 100,000 positions by 2030, including roughly 50,000 already covered by earlier programmes.
- Model portfolio
- Planned to shrink by approximately 50% by 2035.
- Variants and configurations
- Planned to decrease by roughly 75% by 2035.
- Affected German plants
- Emden, Zwickau, Hanover and Neckarsulm have no firm vehicle-production allocations for 2031-2034.
- European overcapacity
- Volkswagen estimates its European manufacturing network has more than 500,000 vehicles of excess annual capacity compared with demand.
- 2030 targets
- Annual sales of 9 million vehicles and a 9% operating margin.
- First-half 2026 performance
- Operating profit was €5.9 billion, net profit was €3.1 billion and the operating margin was 3.8%.
- Estimated tariff impact
- US tariffs could reduce annual operating profit by around €5 billion.
Sources
Volkswagen To Lay Off Another 50,000 Employees; To Halve Model Portfolio
100,000 jobs gone: Inside Volkswagen’s historic ‘Future Plan 2030’ restructuring
Volkswagen to cut at least 1 lakh jobs by 2030 in cost cutting measures