Volkswagen to axe 50,000 more jobs in historic restructuring
Volkswagen has confirmed a sweeping workforce reduction that will reshape the company more than any restructuring in its nine‑decade history. The board has approved plans to cut an additional 50,000 jobs, bringing the total number of roles to be shed by 2030 to 100,000.
The decision underscores the scale of the challenge facing Europe’s largest carmaker, which has struggled with falling sales, shrinking profits, and intensifying competition from Chinese rivals. Shares in the company rose by 7% in Frankfurt on Friday, reflecting investor support for the drastic measures.
Chief executive Oliver Blume described the move as a “strong signal” for the future of the firm, insisting Volkswagen was “taking responsibility for our entire workforce.” The company says it will halve the number of models it produces by 2035 and reduce product complexity by 75%, focusing resources on “the most compelling vehicles.”
The restructuring also places four German plants, Emden, Zwickau, Hanover, and Neckarsulm, under review. Volkswagen acknowledged that production capacity at these sites exceeds demand and said “alternative uses for these plants are being assessed.”
Christianne Benner, president of IG Metall and deputy chair of VW’s Supervisory Board, admitted the company was in a “crisis situation” but stressed that unions had “fought hard for good solutions.”
Volkswagen’s profits have been eroded by declining sales in China, once its most lucrative market, and by tariffs in the United States introduced under President Donald Trump. Meanwhile, Chinese manufacturers such as BYD have expanded aggressively, leveraging lower costs and rapid technological innovation to capture market share in Europe and beyond.
As of 2025, Volkswagen employed more than 660,000 people worldwide across brands including Audi, Porsche, Skoda, Seat, Bentley, and Lamborghini. The company now argues that a “fundamental adjustment of the global workforce capability is necessary” to safeguard competitiveness in an industry undergoing seismic change.
Source: BBC
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