WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is evaluating the possibility of reducing up to 50,000 jobs across its worldwide operations. The total potential number of layoffs could reach 100,000, including those already agreed upon in Germany. Company CEO Oliver Blume informed staff that current assessments indicate an additional 50,000 roles may be affected across the corporation. Volkswagen has not approved a second wave of cuts nor provided a regional breakdown. The timeline for these additional reductions remains undecided.
The existing German restructuring plan encompasses roughly 50,000 jobs at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by 2030. Volkswagen AG is responsible for 35,000 of those positions. Binding agreements already account for over 28,000 departures through the end of the decade. The company has relied on voluntary separations, partial retirements, and other negotiated measures. These agreements distribute the workforce reductions over several years, affecting multiple brands and business units.
At the end of 2025, Volkswagen employed 662,942 individuals worldwide, including those at Chinese joint ventures. Germany accounted for 284,032 employees, while 378,910 worked in other regions. The total workforce was 2.4% below the 2024 figure. Active employees numbered 628,893, with others engaged in partial retirement or vocational training. Volkswagen has not disclosed which specific countries, plants, brands, or job categories might be impacted by the additional reductions under review.
Existing agreements cover half of potential layoffs
The workforce review runs concurrently with a broader strategy presented to the supervisory board on July 9. The executive management outlined 12 initiatives and a target structure for 2030. Volkswagen aims to reduce its model lineup by up to 50% and cut equipment options by up to 75%. The group also set a goal to achieve a production capacity of approximately 9 million vehicles annually. Before the pandemic, Volkswagen had invested in capacity for around 12 million vehicles but has since reduced this by 2 million.
The plan also includes technology platforms, software, factory efficiency improvements, regional operations, investments, and management structures. Volkswagen stated that digital tools, artificial intelligence, and shared services would bolster productivity in development and administrative functions. The public presentation did not specify job numbers for each initiative nor provide a final list of locations or a schedule for the additional layoffs. CFO Arno Antlitz noted that current programs no longer generate sufficient cost savings.
First-half 2026 sees decline in global vehicle deliveries
Previous workforce and bargaining measures yielded approximately 1 billion euros in sustainable cost savings during 2025. Volkswagen aims for over 6 billion euros in annual net savings by 2030, which includes reductions in production capacity already agreed upon. Factory costs at German sites decreased by more than 20% on average in 2025. These figures relate to measures already in progress and do not reflect a fully approved second global job-cut plan. IG Metall has opposed compulsory layoffs and factory closures.
During the first half of 2026, Volkswagen delivered 4.13 million vehicles worldwide, a 6% decrease from the previous year. Deliveries declined by 26% in China and 3.1% in North America. Conversely, Western Europe experienced 3% growth, and South America saw an 8% increase. Electric vehicle deliveries totaled 438,500, down 6%, although European electric vehicle deliveries grew by 8%. Currently, around 50,000 jobs are covered by existing agreements, with another 50,000 under review without a finalized plan for implementation.