Volkswagen’s Supervisory Board unanimously approved an additional workforce reduction of approximately 50,000 people worldwide as part of a plan to restructure the company by 2030.
The decision, approved in Wolfsburg on Thursday, will be added to a program launched at the end of 2024 that envisages reducing the workforce by approximately 50,000 people by the end of the decade. Once both stages are completed, the planned total workforce reduction for the Volkswagen Group will reach approximately 100,000.
Management emphasizes transformation
Volkswagen Group CEO Oliver Blume described the vote as a strong signal for the future of the Volkswagen Group. Blume said Future Plan 2030 was the most extensive strategic transformation program in the group’s history.
Blume said the company was taking responsibility for its employees, business partners and industrial employment worldwide. He announced that investments amounting to hundreds of billions would be made in the coming years to make the iconic brands more attractive, stronger and more competitive.
Sales and product targets are changing
Volkswagen said its workforce needed to be aligned with economic realities amid intensifying global competition, changing demand and technological transformation. Based on the assessment underpinning the plan, approximately 50,000 more positions across the group, including management roles, need to be reorganized.
The group, which employs approximately 663,000 people, is targeting annual vehicle sales of 9 million. This target is approximately 1 million lower than recent sales plans and 3 million lower than plans made before the coronavirus pandemic.
Volkswagen plans to reduce its model portfolio by approximately 50 percent and cut product complexity by approximately 75 percent by 2035. The company aims for the remaining models to stand out in terms of design and technology while benefiting from higher production volumes and lower costs per vehicle.
Alternatives are being considered for European plants
The Volkswagen Group said its existing production capacity in Europe exceeds demand by more than 500,000 vehicles. The company said competitive production allocations for the 2031–2034 period could not be secured in stages for the plants in Emden, Zwickau and Hanover, as well as Audi’s factory in Neckarsulm.
Alternative uses for the four plants are being examined. Volkswagen said a framework for a sustainable and competitive production structure at its European factories is expected to be prepared by the end of June 2027.
