More concrete details about how Volkswagen Group plans to carry out its ambitious restructuring are emerging, with several scenarios already secured. One involves trimming the model lineup, simplifying the range, and reorganizing operations at four German factories whose prospects through 2030 remain uncertain.
But undoubtedly the most sensitive area is employment: the plan includes cutting 50,000 jobs, which raises the total number of layoffs to 100,000 by 2030 worldwide. This represents about 15% of its workforce.
“It is essential to systematically align staffing levels with economic reality”
It was in March when the consortium approved cutting 50,000 jobs in Germany and across all group brands by 2030 due to declining profits: profits fell by around 44% in 2025 due to U.S. tariffs, relentless Chinese competition, and the enormous difficulty of making electric cars profitable.
Currently the situation has not changed and the management board of the German automotive giant has unanimously approved a plan to cut another 50,000 jobs. Its number of employees in Germany fell from 275,000 in 2023 to 254,000 as of June 30, 2026, according to the company’s latest financial report.
The Volkswagen Group (which brings together 10 brands) has argued that without these measures the consortium’s future could be at risk: “It is essential to systematically align staffing levels with economic reality.” Some media outlets rightly point out that these are record cuts with no parallel in the automotive industry.
By way of example, in 1991 General Motors cut 74,000 jobs and closed 21 plants; in 2009 it cut another 47,000 jobs worldwide during its restructuring amid the financial crisis. And Ford has also wielded the scissors significantly: in 2002 it cut 35,000 jobs and closed five plants, only to later, toward the end of that decade, cut tens of thousands more.
