Volkswagen’s supervisory board approved a historic restructuring on Thursday, cutting 100,000 jobs over five years. That includes 50,000 already decided in Germany since 2024. Total cuts reach about 15 percent of the group’s global workforce.
VW blames “increasing global competitive pressure, changing demand, and technological change.” The decision followed an executive committee meeting. The company has overcapacity of 500,000 vehicles in Europe. Four German plants in Emden, Zwickau, Hanover, and Neckarsulm face an uncertain future.
VW did not close the plants. It is exploring alternative uses and wants a new industrial plan by mid-2027. This caution won support from employee representatives. The head of the IG Metall union said they “fought hard for good solutions.”
Beyond job cuts, VW plans a major overhaul. It will halve its model range by 2035 and aims for a 9 percent operating margin in 2030, up from barely 3 percent in 2025. It will invest €135 billion between 2027 and 2031. In North America, it will focus on profitable segments. In China, it will adapt to a slowing market and boost exports to the “Global South.”
VW also plans to simplify its governance. The state of Lower Saxony holds 20 percent and has a blocking minority. Employee representatives have strong influence on the board, a system that has long slowed restructuring. An expert called the agreement a “ceasefire,” not lasting peace, but better than the past two years of public conflict.
Reference
Le Monde, “Volkswagen s’accorde sur une restructuration historique, 100 000 emplois supprimés en perspective d’ici à 2030,” published September 3, 2026. https://www.lemonde.fr/economie/article/2026/09/03/le-conseil-de-surveillance-de-volkswagen-approuve-un-plan-de-restructuration-prevoyant-la-suppression-de-50-000-postes_6765221_3234.html