Volkswagen’s supervisory board has approved a restructuring plan to eliminate an additional 50,000 jobs globally, representing roughly 8 percent of its workforce. This move follows a previous decision to cut 50,000 positions as the automaker seeks to address high costs, overcapacity, and intensifying competition from Chinese manufacturers. As part of its "Future Plan," the company also intends to reduce its vehicle lineup by up to 50 percent by 2035.
While the board reached a unanimous decision on the cuts, labor representatives secured guarantees that no factories will close immediately and that compulsory layoffs remain prohibited through 2030. Chief Executive Officer Oliver Blume aims to achieve a 9 percent operating margin by 2030 through these efficiency measures. Despite avoiding immediate plant closures, the company confirmed it will evaluate alternative uses for several European manufacturing sites to address excess production capacity.
