Volkswagen has approved a major restructuring plan that could remove around 50,000 additional jobs worldwide. The company wants to cut costs and strengthen its position in the global car market.

The Supervisory Board unanimously approved the Future Plan 2030 on September 3. The plan marks one of the biggest transformations in Volkswagen’s history.

The new Volkswagen job cuts will include management positions. They will also come on top of workforce reductions that the company had already announced.

Volkswagen Job Cuts Target 50,000 Positions

Volkswagen said it needs to adjust its global workforce to current economic conditions. Competition has increased, while demand patterns continue to change.

Chinese carmakers have created strong pressure in several markets. In addition, US tariffs and weaker demand in China have created new challenges for the German group.

Volkswagen now believes it needs to remove around 50,000 additional positions. However, the company has not announced how it will distribute those reductions across countries and brands.

The group currently employs around 650,000 people worldwide.

Four German Plants Face an Uncertain Future

The restructuring could also affect Volkswagen’s production network in Germany.

The company identified plants in Emden, Zwickau, Hanover and Neckarsulm as sites with an uncertain long-term production outlook. Volkswagen currently has more than 500,000 vehicles of excess production capacity in Europe.

However, the company has not simply announced the closure of those four factories. Instead, it plans to study alternative uses for the sites. Volkswagen aims to develop a competitive European production structure by June 2027.

Volkswagen Plans Fewer Models and Lower Costs

The Future Plan 2030 goes beyond workforce reductions.

Volkswagen wants to cut its model portfolio by around 50% by 2035. The company also plans to reduce the complexity of its product range by about 75%.

As a result, Volkswagen could produce higher volumes of fewer models. The strategy should help the company lower fixed costs and improve efficiency.

Furthermore, Volkswagen plans leaner management structures. Faster decision-making will become another key part of the transformation.

Volkswagen Will Continue Major Investments

Despite the Volkswagen job cuts, the company still plans major investments.

Volkswagen has set a target of €135 billion for capital expenditure and research and development between 2027 and 2031. The money will support new vehicles, technology and future growth areas.

CEO Oliver Blume described the board’s approval as a strong signal for the group’s future. He said Volkswagen wants to make its brands stronger and more competitive.

Employee representatives also backed the plan after difficult negotiations. However, they stressed that workers should not carry the burden of the transformation alone.

The Volkswagen job cuts now form a central part of the company’s Future Plan 2030. Volkswagen hopes the restructuring will reduce costs while preparing the group for tougher global competition.