Volkswagen’s board has approved a plan to cut an additional 50,000 jobs, the largest workforce reshuffle in its almost nine‑decade history.
The decision brings the total number of roles the German carmaker intends to shed by 2030 to 100,000, following an earlier announcement in March that it would cut 50,000 positions.
Volkswagen – which owns brands such as Audi, Porsche, Skoda, Seat, Bentley and Lamborghini – is also weighing the future of four German plants in Emden, Zwickau, Hanover and Neckarsulm where production capacity exceeds demand.
Chief Executive Oliver Blume said the cuts were a "strong signal" and a necessary "fundamental adjustment of the global workforce capability" to protect the company’s competitiveness.
Shares in the company jumped about 7% in Frankfurt on the morning the news was announced.
The group’s profitability has been hit by a fall in sales in China and the US, while Chinese makers are expanding aggressively with lower production costs.
Volkswagen plans to cut the number of models it produces by 50% and simplify its offering by 75% by 2035, focusing on the most compelling vehicles and increasing volumes of each to lower costs.
A strike‑like shake‑up of its workforce – including management roles – is expected to reduce the workforce by roughly 50,000 across the group.
The automaker is assessing alternative uses for the under‑used plants and is engaging with unions, including IG Metall’s president Christianne Benner, who said VW had fought hard for effective solutions amid the crisis.
