Volkswagen is drawing up proposals for a massive overhaul that will see 100,000 jobs cut in the next few years, double the number previously announced, according to reports. Top bosses are considering a major restructuring and dramatic workforce reduction to achieve cost savings of €11 billion (£9.5 billion) by 2030, local media reported.
Details of the Restructuring Plan
The proposals involve putting four car plants in Germany under review before ending production, according to Manager Magazin. This would mark a significant transformation for the 89-year-old Wolfsburg-based carmaker, which owns brands including Audi, Bentley, Skoda, and Seat. The job cuts would represent about 16% of Volkswagen's global workforce of approximately 625,000 staff.
The scale of cost-cutting is much greater than previously outlined. Volkswagen had earlier said that 50,000 jobs were due to be cut by 2030 across the group in Germany. Chief executive Oliver Blume told shareholders that the company was on track to make savings of more than €6 billion (£5.2 billion) by 2030. He noted that around 28,000 agreements for staff to leave by 2030 had already been made, primarily at the German headquarters.
CEO's Statement on Transformation
“The transformation of the entire company is continuing to pick up speed,” Blume said. “With these programmes we are methodically addressing all cost categories across all brands.” He also stated that the group was working to “address the reduction of overcapacities in our production network” by lowering global production targets from 12 million vehicles to nine million.
Market Challenges
Volkswagen has faced challenging market conditions, with vehicle deliveries dropping by 10% in the US and 8% in China in 2025. The company attributed this to tariffs on US imports and increased competition in China, where electric carmakers like BYD have captured significant market share. However, deliveries in Europe rose by 4.5% to nearly four million vehicles.
Next Steps
Reports indicate that details of the new plan are set to be presented to the company’s supervisory board on July 9. A spokeswoman for Volkswagen declined to comment on the speculation.
