Volkswagen Board Approves Massive 100,000 Job Cut Plan

The supervisory board of Volkswagen Group unanimously approved Future Plan 2030, a sweeping restructuring package designed to combat high production costs, U.S. tariffs, and intensifying competition from Chinese electric-vehicle makers. The plan increases total planned job cuts to 100,000, adding 50,000 positions to a previous reduction goal. To target a 9% operating margin by 2030, the company will reduce product complexity by 75% and halve its vehicle model lineup from roughly 80 to 40 by 2035.

CEO Oliver Blume secured the agreement by making key concessions to labor unions, including dropping a proposal to spin off the passenger cars and components divisions. While the company is exploring alternative uses for plants in Emden, Zwickau, Hannover, and Neckarsulm—including potential partnerships with Chinese automakers—Blume deferred final decisions on their fate to avoid immediate confrontation. Compulsory layoffs remain ruled out through 2030.

Investors reacted positively to the streamlining effort, sending shares up 6% on Friday. The move follows a first-half profit decline of 8.7% to 8.2 billion euros, driven by a market slump in China of more than 20% this year. The agreement was brokered with the help of the Government of Lower Saxony and the IG Metall union to ensure the burden of transformation does not fall solely on employees.