Volkswagen plans 50,000 more job cuts by 2030, taking planned reductions to 100,000 positions globally. The automaker approved the move Thursday in Wolfsburg under its Future Plan 2030, targeting lower costs and competitiveness. 

The restructuring responds to weak demand, excess capacity, US tariffs, and pressure from Chinese electric vehicle makers. Volkswagen will spread cuts across global operations, including management roles, while simplifying production.

The latest Volkswagen restructuring could affect about one in seven employees globally. The group employed 650,000 people globally, making the plan one of automotive history’s largest reductions. 

Volkswagen faces more than 500,000 vehicles of excess annual capacity across Europe. Four German factories in Emden, Zwickau, Hanover, and Neckarsulm lack secured production plans beyond model cycles.

CEO Oliver Blume called the board approval a ‘strong signal for the future of the Volkswagen Group.’ He said the company needs a workforce structure matching changing market conditions and technological shifts. Volkswagen aims to improve efficiency while protecting investments in electric vehicles and software.

The plan also targets a smaller vehicle portfolio. Volkswagen intends to reduce its model lineup by up to 50% and cut product complexity by 75% by 2035. Higher volumes for fewer models could lower manufacturing costs and improve scale.

The four German plants will not face immediate closure decisions under the agreement. Volkswagen and labor representatives will examine alternative uses as current production programs approach their end. Existing agreements rule out compulsory layoffs through 2030, according to the works council.

Union leaders accepted the restructuring after negotiations, while warning against placing the burden mainly on employees. IG Metall Chief Christiane Benner and works Council Leader Daniela Cavallo said the compromise ‘prevented a dangerous escalation.’

Volkswagen now faces a balance between cutting costs and funding its technology transition. Chinese EV competition continues to challenge established automakers across Europe.

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