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Volkswagen announced on Thursday that it will reduce its workforce by an additional 50,000 jobs as part of a major restructuring effort. The move comes amid rising competition from Chinese automakers, soaring energy costs, and the substantial expenses involved in transitioning to electric vehicles.
“This is a strong signal for the future of the Volkswagen Group,” said CEO Oliver Blume following a supervisory board meeting. The company’s workforce totals more than 650,000 employees worldwide, and negotiations with unions representing these workers have been challenging.
Despite previous tensions, union leaders expressed support for the plan. Christiane Benner, president of the IG Metall union, stated, “In this crisis situation, we fought hard for good solutions. The executive board now has the foundation to tackle the major tasks ahead.”
These latest job cuts build on a 2024 agreement with unions to eliminate over 35,000 positions at Volkswagen’s German plants by 2030. The company revealed that its European factories currently have the capacity to produce 500,000 vehicles beyond market demand, putting the future of production at facilities in Emden, Zwickau, Hanover, and Neckarsulm in question between 2031 and 2034. Volkswagen is considering alternative uses for these sites.
The restructuring initiative, dubbed “Future Plan 2030,” is described as the most extensive transformation program in Volkswagen’s history. The company emphasized the need for a “fundamental adjustment” of its global workforce, including management roles, beyond current cost-cutting measures.
Details regarding the timing, locations, and methods of the job reductions-whether layoffs, buyouts, or reassignments-have not been disclosed.
In addition to workforce reductions, Volkswagen plans to halve its model lineup by 2025 and reduce product complexity by approximately 75%. The company aims to sell around 9 million vehicles annually and achieve a 9% operating margin by 2030.