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VW Overhaul: 50,000 Jobs Cut, Fewer Models Planned
4 Sep
Summary
- Volkswagen will cut 50,000 jobs, nearly 8% of its global workforce.
- The carmaker plans to reduce its vehicle lineup by up to 50% by 2035.
- VW aims for a 9% operating margin by 2030 amidst fierce competition.
Volkswagen AG's supervisory board has approved a significant restructuring plan, dubbed the Future Plan, aimed at reshaping Europe's largest automaker. This overhaul includes a reduction of 50,000 jobs, which accounts for approximately 8% of the company's global workforce as of late 2025. The plan also mandates a substantial decrease in the vehicle lineup, potentially by up to 50% by 2035.
The comprehensive restructuring effort comes in response to intensifying global competition, evolving consumer demand, and rapid technological advancements in the automotive sector. Volkswagen's leadership stated that aligning workforce capacity with economic realities is essential for navigating these challenges.
While the approved plan involves significant job cuts, labor representatives have secured assurances. Compulsory layoffs are ruled out through the end of 2030. Furthermore, no factories are slated for immediate closure, and contentious site decisions will be addressed in the coming months.
The Future Plan aims to achieve a 9% operating margin by 2030, with targeted annual sales of about 9 million vehicles. Volkswagen also plans substantial capital expenditure and research and development investments totaling €135 billion between 2027 and 2031.
