WOLFSBURG: Volkswagen’s supervisory board unanimously approved plans on Thursday to eliminate another 50,000 positions worldwide as the German automotive group accelerates a major restructuring programme through 2030.
The latest reduction comes on top of existing programmes under which Volkswagen had already agreed to cut around 50,000 jobs by the end of the decade. Together, the measures could reduce the workforce by approximately 100,000 positions.
Volkswagen currently employs around 663,000 people globally.
Chief Executive Oliver Blume described the decision as a strong signal for the company’s future, calling Future Plan 2030 the most strategically significant transformation programme in Volkswagen’s history.
Volkswagen Plans Major Investment Despite Job Cuts
Blume said Volkswagen would invest a three-figure billion-euro sum over the coming years to strengthen its brands and improve competitiveness.
Meanwhile, the company cited intensifying global competition, changing consumer demand and technological developments as reasons for aligning employment levels with economic conditions.
Volkswagen is targeting annual sales of nine million vehicles, around one million below recent volume plans and three million fewer than before the coronavirus pandemic.
Furthermore, the group plans to halve its model portfolio and reduce product complexity by approximately 75% by 2035.
European Plants Face Excess Production Capacity
Volkswagen said its European factories currently have production capacity exceeding demand by more than 500,000 vehicles.
Consequently, the company said competitive future production allocations cannot currently be secured for plants in Emden, Zwickau and Hanover, as well as Audi’s Neckarsulm facility, between 2031 and 2034.
Volkswagen is examining alternative uses for the four sites.
Additionally, the company plans to develop a sustainable and competitive production structure for its European manufacturing network by the end of June 2027.
