Volkswagen approves 50,000 more job cuts in Future Plan 2030
Volkswagen Group's supervisory board has approved Future Plan 2030, which includes a further 50,000 job cuts across the group.
Volkswagen Group's supervisory board has unanimously approved a new strategic blueprint called Future Plan 2030. The plan includes a further group-wide workforce adjustment of about 50,000 positions, including management roles. This latest round follows an announcement earlier this year of 50,000 job cuts, bringing the total planned workforce reductions by the end of the decade to 100,000.
Chief executive Oliver Blume stated the board's approval was a strong signal for the future. He said the company would invest a three-figure billion sum over the coming years to make its brands more attractive and competitive.
The German automaker said the additional job cuts are necessary beyond existing programmes. The adjustment is intended to align workforce capacity with economic reality amid changing demand, technological shifts and intensifying global competition.
Production structure review
The plan mandates a review of production structures in Europe. Volkswagen said a concept for a sustainable and competitive production structure for its European plants must be developed by the end of June 2027.
The supervisory board noted the group's European capacity currently exceeds demand by more than 500,000 units. It added that a competitive future production allocation for the Emden, Zwickau, Hanover and Neckarsulm plants cannot currently be secured on a staggered basis from 2031 to 2034. Alternative uses for those plants are being assessed in parallel.
Product portfolio and financial targets
Future Plan 2030 also sets out significant changes to Volkswagen's product range. By 2035, the group plans to reduce its model portfolio by around 50% and cut offering complexity by about 75%.
On financial targets, Volkswagen is planning for annual sales of nine million vehicles and an operating margin of 9% by 2030. According to the source, that would correspond to an operating result of about €31bn. The company also outlined €37bn in overhead costs and a target of €135bn for capital expenditure and research and development in the 2027 to 2031 planning period.
| Target Metric | Goal by 2030/2035 |
|---|---|
| Annual Vehicle Sales | 9 million |
| Operating Margin | 9% |
| Operating Result | ~€31bn |
| Overhead Costs | €37bn |
| Capex & R&D (2027-2031) | €135bn |
| Model Portfolio Reduction (by 2035) | ~50% |
| Offering Complexity Reduction (by 2035) | ~75% |
Organisational simplify
The programme includes measures aimed at creating leaner leadership structures and shorter decision-making lines. It also involves a review of the group structure and a simplify of the investment portfolio by around one-third.
The executive board will now work alongside brands, subsidiaries and employee representatives to implement the plan. The company stated it is taking responsibility for its entire workforce, partners, and industrial jobs worldwide as it executes this transformation.
