Volkswagen confirms 100,000 job cuts by 2030 in sweeping restructuring

Volkswagen has announced plans to cut 100,000 jobs by the end of the decade as part of a major restructuring of its business. The German carmaker said the move comes amid pressure from US tariffs and intense competition from Chinese rivals. It also said the number of models it produces will be reduced by half, while up to four plants in Germany could face closure.

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The company said management and unions had agreed to the plan, which includes a further reduction of about 50,000 jobs by 2030 on top of 50,000 already agreed. Volkswagen said the supervisory board had unanimously approved the executive board's future plan. Chief executive Oliver Blume said the approval was a strong signal for the group's future, after earlier facing criticism from staff during a visit to the company's headquarters in Wolfsburg.

Volkswagen said the total of 100,000 cuts would amount to about 15% of its workforce and would be the largest restructuring ever carried out in the global automotive industry. The company employs more than 650,000 people across its brands, including Audi, Bentley, Skoda, Seat, Porsche, Cupra and Lamborghini. The plants named in the plan are in Hanover, Emden, Zwickau and Neckarsulm, and their future was described as not guaranteed into the 2030s.

The announcement matters because Volkswagen is one of Europe's largest industrial employers and a central part of Germany's manufacturing base. Any large-scale reduction in jobs or production capacity is likely to have implications for workers, suppliers and local economies. It also reflects the pressure facing established carmakers as they try to adapt to weaker sales in China, higher trade barriers and growing competition from Chinese manufacturers in Europe.

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Volkswagen's restructuring comes after months of concern about its financial challenges and the scale of change needed across the group. The company's plans had been the subject of speculation before the board's approval, but the latest announcement confirms the depth of the cuts now being pursued. The decision also underlines the role of the supervisory board, which represents both labour and shareholders, in shaping the company's direction.

What remains unclear is how the cuts will be distributed across the group and what the final outcome will be for the four German plants mentioned. It is also not yet clear how the plan will affect individual brands or production lines beyond the stated reduction in models. The next stage will be implementation, and attention will now turn to how workers, local authorities and investors respond to the scale of the restructuring.

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