The board of German automotive giant Volkswagen has approved a plan to cut an additional 50,000 jobs as part of a comprehensive restructuring initiative. This decision brings the total number of positions the company aims to eliminate by 2030 to 100,000, as reported by the BBC.
Volkswagen, which encompasses brands such as Audi, Porsche, and Skoda, initially announced plans to reduce its workforce by 50,000 roles in March. The company’s chief executive, Oliver Blume, described the latest move as a “strong signal” for the future, emphasising the firm’s commitment to its workforce.
The decision to downsize comes amid declining profits attributed to falling sales and increasing competition, particularly from Chinese manufacturers. Blume indicated that the company is prioritising its most compelling vehicles to enhance production efficiency and reduce costs.
Volkswagen stated that a “fundamental adjustment of the global workforce capability is necessary” to maintain its competitiveness in a rapidly changing market. The company plans to adjust approximately 50,000 positions across the group, including management roles.
Additionally, Volkswagen is evaluating the future of several plants, including those in Emden, Zwickau, Hanover, and Neckarsulm, where production capacity currently exceeds demand. The company is exploring alternative uses for these facilities.
This restructuring marks the most significant transformation in Volkswagen’s nearly 90-year history. As of 2025, the company employed over 660,000 people globally, with its portfolio also including brands like Seat, Bentley, and Lamborghini.
Christianne Benner, president of the industrial union IG Metall and deputy chair of Volkswagen’s Supervisory Board, noted that the company has worked diligently to find effective solutions to address the current crisis.
Volkswagen’s profits have been adversely affected in recent years, particularly due to declining sales in China, which was once a key market. Sales in the United States have also suffered, partly due to tariffs on car imports imposed during the previous U.S. administration.
Chinese automakers have been aggressively expanding their market presence, leveraging new technologies and lower production costs. Companies like BYD have reported significant sales increases in markets across the UK, European Union, and Southeast Asia.
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