50,000 more job cuts planned as Volkswagen approves major restructuring

Volkswagen's supervisory board has approved a transformation plan that could cut another 50,000 jobs worldwide. The move marks the group's most extensive restructuring as it faces tariffs, overcapacity and competition from Asian rivals.Volkswagen's supervisory board has approved a transformation plan that could cut another 50,000 jobs worldwide. (Image: Reuters)Volkswagen's supervisory board unanimously approved a transformation plan on Thursday that could include cutting another 50,000 jobs as the carmaker seeks to counter tariffs, overcapacity and competition from Asian rivals.The plan marks the most extensive restructuring in Volkswagen's 89-year history. It includes exploring alternatives for four German plants that have no firm production plans for the next decade.The transformation plan also calls for simplifying Volkswagen's conglomerate structure and limiting the supervisory board's influence over key decisions. Unions and shareholder Lower Saxony hold a majority on the supervisory board."This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide," CEO Oliver Blume said in a statement. Volkswagen's management board presented the "Future Plan", which the supervisory board approved at a meeting. The plan comes as Europe's largest carmaker faces pressure from multiple sides, including US import tariffs and a weak Chinese market.Volkswagen said it needed "a further fundamental adjustment of the global workforce capacity." The adjustment would include reducing around 50,000 positions worldwide, in addition to a 50,000-job reduction already under way. The company did not provide further details about the timing of the workforce reduction or how it would distribute the cuts across its brands and regions.The agreement follows weeks of tense negotiations between the board and majority owner Porsche SE on one side and unions and Lower Saxony on the other. Management had considered calling an extraordinary general meeting to push through its demands.Volkswagen cited increasing global competitive pressure, changing demand patterns and technological change in the automotive industry as reasons for the planned measures.- EndsWith agency inputs.Published By: Akshat TrivediPublished On: Sep 4, 2026 04:13 IST