Volkswagen to Cut 100,000 Jobs and Phase Out Seat

The Volkswagen Group has approved a sweeping restructuring plan to eliminate 100,000 jobs by 2030, the largest workforce reduction in the history of the global automotive industry. The plan, which represents approximately 15% of the total workforce, was unanimously approved by the supervisory board. The company intends to reduce its annual production capacity from 12 million to nine million vehicles and cut its number of car models by half.

As part of these cost-cutting measures, the company may shutter four German production plants located in Hanover, Emden, Zwickau, and Neckarsulm. Management attributes the crisis to falling profits, U.S. tariffs, and fierce competition from Chinese manufacturers. While the company states the cuts are necessary to align workforce levels with economic realities, some critics characterize the situation as a failure of the company's electric-vehicle strategy.

Parallel to the job cuts, internal documents indicate the company plans to phase out the Seat brand by the end of 2029. Volkswagen intends to shift its Spanish operations toward Cupra, a performance-oriented brand that has seen a 33% surge in deliveries while Seat sales fell 17% last year. Under the proposal, Cupra would inherit Seat's manufacturing infrastructure and sales operations with a target of selling 500,000 to 600,000 vehicles annually.