Frankfurt, Germany – German car giant Volkswagen has agreed to cut a further 50,000 jobs by the end of the decade, bringing total job losses to 100,000, the company announced on Thursday. The move, which amounts to about 15% of the carmaker’s global workforce, marks the largest restructuring ever carried out in the automotive industry. The cuts come as Volkswagen faces significant headwinds, including U.S. tariffs, patchy demand for electric vehicles, and intense competition from China, particularly in the Chinese market.
The 10-brand group, which includes Audi and Porsche, had already agreed to cut approximately 50,000 jobs worldwide. The new agreement, approved by the supervisory board, brings the total reduction to 100,000. The company stated that it is “essential to systematically align workforce levels with economic realities.” The restructuring also raises the possibility of the first-ever closure of full-scale factories in Germany, with the future of plants in Hannover, Emden, Zwickau, and Neckarsulm uncertain into the 2030s.
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Volkswagen CEO Oliver Blume welcomed the agreement, stating that the supervisory board had “unanimously approved the executive board’s future plan.” The decision marks progress in delicate negotiations between management and labour representatives. The restructuring reflects the mounting challenges facing Europe’s largest carmaker as it navigates a rapidly shifting global automotive landscape, characterized by geopolitical tensions, technological disruption, and changing consumer preferences. The job cuts are expected to help the company reduce costs and streamline operations as it transitions to electric and autonomous vehicles.
