Volkswagen approved the reduction of 50,000 jobs

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September 4, 2026 10:08

The supervisory board of German auto giant Volkswagen (VW) has approved a restructuring plan proposed by the company's management board. As part of this program, the automaker plans to cut an additional 50,000 jobs in the coming years, TASS reports, citing the DPA agency.

According to the agency, after intensive and constructive discussions, the supervisory board unanimously approved the so-called "Future Plan — 2030." According to the document, it provides for a "reduction in headcount across the entire group by approximately 50,000 jobs." This workforce adjustment worldwide, as the company explained, is necessary to achieve the goals of the transformation program. In addition, four Volkswagen plants are now under threat of closure.

VW clarified that for the sites in Emden, Zwickau, Hanover, and Neckarsulm, it is impossible to guarantee competitive capacity utilization in subsequent periods, beginning in stages from 2031 to 2034. For these enterprises, "alternative use options" will be explored in parallel and as a complement. A concept for a sustainable and competitive production structure corresponding to the company's target vision must be worked out for European plants by the end of June 2027. The plan also provides for a reduction in the model range by nearly 50%.

In connection with this, restructuring costs could amount to up to €10 billion. "The Future Plan creates the conditions for making the Volkswagen Group and its brands more efficient, competitive, and forward-looking," the company noted. The IG Metall trade union and the group's general works council, in their initial reaction, emphasized that this decision made it a possible to prevent an escalation of the conflict.

"The course toward confrontation and the management board's communication in recent weeks did not produce the desired results," according to a joint statement by IG Metall chair Christiane Benner and works council chair Daniela Cavallo. According to them, the question of spinning off the core Volkswagen brand (passenger cars) and the VW Components division (auto components manufacturing) is no longer on the agenda.

Two months ago, the management board's plans for cost-saving measures and further development were discussed for the first time in the supervisory board, but at that time they failed due to resistance from employee and federal state representatives. Since Volkswagen announced the need for further savings in recent months, a struggle has been underway over tens of thousands of jobs and the company's four plants. Earlier, Volkswagen announced plans to cut 50,000 jobs by 2030.

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Tags: GERMANY

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