WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is evaluating the possibility of reducing up to 50,000 jobs across its worldwide operations. The total potential reduction, including already agreed-upon cuts in Germany, could reach 100,000. Chief Executive Oliver Blume told employees that current estimates indicate another 50,000 positions may be affected across the entire group. Volkswagen has not yet approved a second phase of cuts nor provided a regional breakdown. The company also has not announced a definitive timeline for implementing these additional layoffs.
The current German workforce reduction plan encompasses approximately 50,000 roles at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by the year 2030. Of these, Volkswagen AG accounts for 35,000 jobs. Binding agreements already ensure over 28,000 departures by the end of this decade. The company has primarily relied on voluntary exit programs, partial retirements, and other negotiated measures. These agreements distribute the workforce reductions over several years, affecting multiple brands and business units.
By the end of 2025, Volkswagen employed 662,942 individuals worldwide, including staff at Chinese joint ventures. Of these, 284,032 were based in Germany, while 378,910 worked elsewhere. The overall workforce was 2.4% below the 2024 level. Active employees numbered 628,893, with others in partial retirement or vocational training. Volkswagen has not disclosed which specific countries, plants, brands, or job categories are under review for the additional cuts.
Existing agreements cover half of the potential layoffs
The workforce review accompanies 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 reduce its model lineup by up to 50% and cut equipment options by up to 75%. The group also set a target to achieve a production capacity of roughly 9 million vehicles annually. Before the pandemic, Volkswagen had invested in capacity for about 12 million vehicles, but this has since been reduced by 2 million.
The plan also involves technology platforms, software, factory efficiency improvements, regional operations, investments, and management structures. Volkswagen stated that digital tools, artificial intelligence, and shared services would enhance productivity in development and administrative functions. The public presentation did not specify job numbers for each initiative, nor did it provide a final list of locations or a timetable for the additional layoffs. CFO Arno Antlitz noted that current programs no longer deliver sufficient cost savings.
Global vehicle deliveries decrease in first half of 2026
Previous workforce and bargaining measures generated approximately 1 billion euros in sustainable cost savings during 2025. Volkswagen aims for more than 6 billion euros in annual net savings by 2030, which includes the previously agreed reductions in production capacity. Factory costs at German sites decreased by over 20% on average in 2025. These figures pertain to measures already in progress, not a fully approved second global job-cut plan. IG Metall has opposed forced layoffs and factory closures.
Volkswagen delivered 4.13 million vehicles worldwide during the first half of 2026, representing a 6% decline compared to the same period last year. Deliveries dropped 26% in China and 3.1% in North America. Meanwhile, Western Europe saw a 3% increase, and South America grew by 8%. Electric vehicle deliveries reached 438,500 units, down 6%, although European electric vehicle deliveries rose by 8%. The existing agreements cover about 50,000 layoffs, while Volkswagen continues to review an additional 50,000 positions without a final plan for implementation.