WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is examining the possibility of cutting up to 50,000 jobs across its worldwide operations. The total potential number, including reductions already agreed upon in Germany, could reach 100,000. CEO Oliver Blume informed employees that current estimates suggest another 50,000 roles could be eliminated throughout the group. Volkswagen has not yet approved a second phase nor provided a regional breakdown, nor has it announced a definitive schedule for these additional layoffs.
The existing German plan targets approximately 50,000 positions at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by 2030. Out of these, Volkswagen AG accounts for 35,000 jobs. Binding agreements currently cover over 28,000 departures through the end of the decade, achieved through voluntary exits, partial retirements, and other negotiated measures. These agreements spread the workforce reductions over several years, across various brands and business units.
At the end of 2025, Volkswagen’s global workforce numbered 662,942 employees, including staff at Chinese joint ventures. Germany employed 284,032 workers, while the remaining 378,910 were based elsewhere. The total headcount was 2.4% lower than in 2024. Active employees numbered 628,893, with others in partial retirement or vocational training. Volkswagen has not specified which countries, plants, brands, or job categories would be affected by the additional reductions currently under review.
Existing agreements account for half of potential layoffs
The workforce review coincides with a broader strategy presented to the supervisory board on July 9. The executive board outlined 12 initiatives and a target structure for 2030. Volkswagen aims to cut its model lineup by up to 50% and reduce equipment options by up to 75%. The group also established a target production capacity of approximately 9 million vehicles annually. Prior to the pandemic, Volkswagen had invested in capacity for about 12 million vehicles and has since scaled back by 2 million.
The plan additionally encompasses technology platforms, software, plant efficiency, regional operations, investments, and management structures. Volkswagen indicated that digital tools, artificial intelligence, and shared services will enhance productivity in development and administrative functions. The public presentation did not specify exact job figures for each initiative, nor did it provide a final list of locations or a timetable for the additional reductions. CFO Arno Antlitz noted that current programs are no longer sufficient to achieve the desired cost savings.
Vehicle deliveries decline in first half of 2026
Previous workforce and bargaining measures generated approximately 1 billion euros in sustainable cost savings during 2025. Volkswagen aims for over 6 billion euros in annual net savings by 2030, including the agreed-upon reductions in production capacity. Factory costs at German sites decreased by more than 20% on average in 2025. These figures relate to measures already implemented and do not include a fully approved second global job-cut scheme. IG Metall has opposed compulsory layoffs and factory closures.
In the first half of 2026, Volkswagen delivered 4.13 million vehicles globally, a 6% decrease compared to the previous year. Deliveries declined by 26% in China and 3.1% in North America. Conversely, Western Europe saw a 3% growth, and South America increased by 8%. Electric vehicle deliveries reached 438,500 units, down 6%, although European electric vehicle deliveries grew by 8%. Currently, about 50,000 cuts are covered by existing agreements, with Volkswagen continuing to review an additional 50,000 roles without a finalized plan for implementation.