Volkswagen to Cut 50,000 Jobs, Reduce Models and Industrial Footprint

Volkswagen’s supervisory board has approved a comprehensive restructuring plan, known as the Future Plan, which includes cutting 50,000 jobs, reducing the number of models, and shrinking the company’s industrial footprint. The plan, which was approved on September 3, aims to make the company more competitive in the face of intensifying global competition, shifting demand, and technological change in the automotive industry. The job cuts, which represent about 8% of Volkswagen’s global workforce, will be implemented in addition to the reductions agreed upon since late 2024. The company will also explore alternative uses for four plants, including Emden, Hannover, Neckarsulm, and Zwickau, which currently lack competitive follow-on production. The plan targets an operating margin of 9% by 2030 and includes investing 135 billion euros in research and development through 2031. The decision gives CEO Oliver Blume a stronger mandate to push ahead with the changes, which have been met with resistance from employee representatives and the state of Lower Saxony. However, the plan does not include immediately closing factories, and labor leaders have stated that no plant has been abandoned. The company is planning to slim its vehicle lineup by as much as 50% by 2035, as part of its efforts to become more competitive.