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Volkswagen Plans to Cut 50,000 Jobs Worldwide by 2030
Volkswagen Group announced plans to eliminate 50,000 jobs globally by 2030 amid increasing global competitive pressures. The company described this transformation not as a temporary project but as an ongoing restructuring process.
German automaker Volkswagen Group has announced plans to cut 50,000 jobs worldwide by 2030. Company management stated that rising global competitive pressures have made this step necessary.
CEO Oliver Blume addressed shareholders at the annual general meeting held online. Blume described the conditions in the automotive sector as "tense and challenging," noting that they are expected to worsen further by 2026.
Blume said that business models that were successful in the past are no longer functional. He explained that the board has prepared a future plan and views the transformation not as a temporary project with a start and end, but as a continuous mission.
The company reiterated its goals under the 2030 Strategy published in May 2026. According to this, Volkswagen aims to achieve an operating profit margin between 8% and 10% by the end of 2030 and become "the world's most attractive automotive manufacturer."
As part of the plan, 35,000 positions are expected to be cut within Volkswagen’s core brand alone by 2030. Blume stated that employment will have already been reduced by 19,000 by the end of 2026, and approximately 28,000 voluntary departure agreements have been reached so far.
Blume emphasized the critical importance of managing idle capacity in factories in Europe and China. He noted that with Chinese suppliers entering Eastern and Southern European markets with new and efficient plants, it is not sustainable to maintain facilities operating at low capacity.
Accordingly, the company aims to reduce capacity by an additional 500,000 vehicles by 2030 on top of the ongoing reduction of 1 million vehicles in European factories by 2028. A capacity reduction of 500,000 vehicles is also planned in China.
Volkswagen thus plans to reduce its global annual production capacity by a total of 1 million vehicles and align its long-term annual sales target to around 9 million cars.
The group’s management board will present its comprehensive restructuring plan to the supervisory board before the summer break. The company is expected to implement eight key measures during this process.
The plan includes working with fewer model variants, reducing the number of technological platforms, strengthening regional focus, decreasing the number of subsidiaries, and cutting management layers. Volkswagen also plans to optimize group management by further simplifying core functions such as development, procurement, production, and sales.
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