Volkswagen approves additional 50,000 job cuts as part of Future Plan 2030
Volkswagen's supervisory board approved a plan to cut another 50,000 jobs, bringing total layoffs to 100,000, while the company's shares rose nearly 6% after the announcement.
Volkswagen said its supervisory board has approved the Future Plan 2030, a restructuring program that adds 50,000 job cuts to the 50,000 already approved, taking total workforce reductions to 100,000. The plan, described by the automaker as its most strategically profound transformation in its 89-year history, also calls for a flatter management structure, a 50% reduction in its model portfolio by 2035 and the possible repurposing of four German plants whose production lines are not secured beyond 2034.
The announcement sent Volkswagen shares up 5.8% shortly after the market opened, making the stock the top performer on the Stoxx 600 on Friday, although it remains down 21% for the year.
"We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide," CEO Oliver Blume said, adding that the company will invest a three-figure-billion-euro sum to strengthen its brands and competitiveness.
The move comes as the group faces higher tariff costs – reported at €2.9 billion for the 2025 fiscal year – and intensified competition from Chinese electric-vehicle makers such as BYD and Geely. Analysts noted that the approval of the plan was a “fundamental breakthrough” and could set a precedent for other European manufacturers dealing with overcapacity and price pressure.
"Europe is therefore importing not only Chinese cars, but Chinese price deflation," Kevin Thozet of Carmignac said, highlighting the broader challenges confronting the continent’s auto sector.