Volkswagen’s supervisory board has approved a restructuring plan to eliminate around 50,000 jobs and end vehicle production at four German plants located in Emden, Zwickau, Hanover, and Neckarsulm. Instead of closing the sites outright, the company will explore alternative uses for them. Put forward by chief executive Oliver Blume, the plan aims to address excess production capacity in Europe, compete against low-cost Chinese manufacturers, and absorb the impact of US tariffs. Additionally, Volkswagen will slim its model lineup by about half.
These new reductions come on top of roughly 50,000 jobs already targeted for reduction at the core brand, Audi, Porsche, and the software unit Cariad, potentially bringing total affected positions to close to 100,000. The cuts are expected to include a significant number of management positions alongside factory-floor roles. Volkswagen has previously struggled with weak demand in Europe, price competition in China, and higher costs from the transition to electric vehicles.
Labor unions, which hold significant power within Volkswagen’s governance structure, are expected to negotiate the terms and pace of the job losses. The restructuring reflects broader pressures facing Germany’s automotive sector as it navigates the shift to electric vehicles and competition from Chinese carmakers, with the scale of the cuts likely to impact the regions where Volkswagen is a major employer.