The Volkswagen Group has formalized a global restructuring plan aimed at cutting over 50,000 jobs. The Board of Directors has unanimously approved a plan that includes additional cuts of 50,000 positions worldwide. This decision represents a significant step forward in the restructuring program that extends until 2030.

According to the company, the main objective is to align the workforce with the "economic reality" in a rapidly evolving market. CEO Oliver Blume has defined the vote as a "strong signal for the future of the Volkswagen Group," emphasizing that this is the most strategic transformation in the company's history. The leadership has declared they will take responsibility for all staff, partners, and industrial positions worldwide.

According to the plan's analysis, in addition to the ongoing program, an additional adjustment of approximately 50,000 positions will be needed, including management roles. The company currently operates with approximately 663,000 employees worldwide, making the cut even more significant. The company aims to achieve an annual sales volume of 9 million vehicles, a number lower than previous plans and pre-pandemic expectations.

For 2035, the group is expected to reduce its product portfolio by about 50% and the complexity of its products by 75%. Current production in Europe exceeds demand for over 500,000 vehicles, creating a production capacity shortage. German companies cannot yet guarantee competitive production for their plants in Emden, Zwickau, and Hanover until 2031.

For these four plants, alternatives are under study, while the group expects to develop a concept for a sustainable and competitive production structure in Europe by the end of June 2027. The situation remains uncertain for the plants in Emden, Zwickau, and Hanover, with future production still under review. The company is studying alternatives for these sites, but it is not yet clear if the studied alternatives are sufficient to guarantee future competitiveness.