Volkswagen Board Approves Plan to Cut 50,000 Jobs

The board of Volkswagen has approved a plan to cut 50,000 jobs as part of a turnaround program, bringing the total planned job reductions to 100,000 by 2030. The company, which includes brands such as Audi, Porsche, and Skoda, announced in March that it would cut 50,000 roles by the end of the decade. CEO Oliver Blume stated that the move is a signal for the future of the firm and reflects the company's responsibility towards its workforce. Blume had indicated in July that additional cuts were being considered. Volkswagen has experienced a decline in profits due to decreased sales and competition from Chinese brands. The company plans to focus on producing the most compelling vehicles to reduce costs. A necessary adjustment of the global workforce is aimed at maintaining competitiveness amid changing demand and technological advancements. The company is also evaluating the future of its Emden, Zwickau, Hanover, and Neckarsulm plants, where production capacity currently exceeds demand. This restructuring is noted as the largest in Volkswagen's nearly 90-year history. As of 2025, Volkswagen employed over 660,000 people worldwide, with additional brands including Seat, Bentley, and Lamborghini. Christianne Benner, president of the industrial union IG Metall and deputy chair of Volkswagen's Supervisory Board, remarked that the company has worked hard to find solutions to address the crisis. Volkswagen's profits have declined significantly in recent years, particularly due to falling sales in China, which was once a major market. Sales in the US have also decreased, partly due to tariffs on car imports introduced during the Trump administration. Chinese manufacturers, such as BYD, have been expanding rapidly, benefiting from lower production costs and new technologies. The German automotive industry is currently facing significant challenges.