50,000 jobs cut

VW Supervisory Board Approves Cost-Cutting Measures

For Volkswagen, this means tightening its belt. Tens of thousands of jobs within the company are set to be cut.(Bild: AFP/TOBIAS SCHWARZ)

The Volkswagen Supervisory Board has unexpectedly approved the Executive Board’s restructuring plan. The vote was unanimous, the company announced on Thursday following a meeting of the Executive Committee that had been moved up on short notice. 50,000 jobs will be cut, the company confirmed, referring to “adjustments to staffing levels.” 

The plan for the future creates the conditions to position the Group and its brands to be more efficient, more competitive, and more future-oriented, the statement said. In the view of the Executive Board and the Supervisory Board, implementing the future plan is absolutely necessary to maintain the Volkswagen Group’s competitiveness and secure it sustainably for the future.

Volkswagen mentioned that 50,000 jobs are to be cut worldwide. This is necessary to achieve the goals of the transformation program, the statement said: “In light of increasing global competitive pressure, changing demand patterns, and technological transformation in the automotive industry, it is essential to consistently align workforce capacity with economic realities.”

For Volkswagen, this means tightening its belt. Tens of thousands of jobs are set to be cut across the group.(Bild: AFP/TOBIAS SCHWARZ)

Restructuring costing up to ten billion euros
Previously, the “Bild” newspaper had cited the resolution in question, which, among other things, puts up to 60,000 positions—including management roles—on the chopping block. The plan is to start with around 47,000 jobs worldwide; plants in Europe will also be affected. According to the draft, the restructuring is expected to cost at least 6.6 billion euros, and in extreme cases, up to ten billion euros.

The company plans to expand its North American and Chinese operations, as VW announced: “In North America, the Volkswagen Group will focus on the most profitable segments in the future. The Group is adapting its China operations to the changed expectations regarding the overall growth of the Chinese automotive market and is expanding its export business toward the Global South.”

Measures already initiated will be consistently continued, and further steps are being taken immediately.

Aus der Konzernmitteilung. VW drückt aufs Gas. 

No Comment Yet on Seat’s Discontinuation
There is still no official statement regarding the rumored discontinuation of the Seat brand. On Thursday, “Wirtschaftswoche” reported, citing a board resolution, that Seat would no longer be included in the 2030 vision and that the brand is set to be phased out by 2029.

Four Plants Fear for Their Future
The future of several German plants also remains uncertain. According to the Executive Board, production is set to wind down in Emden and Zwickau in 2031, at the commercial vehicle plant in Hanover in 2032, and at the Audi plant in Neckarsulm in 2034. The company stated on Thursday evening: “For the Emden, Zwickau, Hanover, and Neckarsulm sites, no competitive follow-on use can be guaranteed on a phased basis from 2031 through 2034.” “Alternative uses” are being examined for these plants. This plan has recently met with fierce opposition from politicians and employee representatives.

Germans Support Government Assistance
The Volkswagen Group, which also includes Porsche, Audi, and Škoda, is one of Germany’s largest employers, with over 298,000 employees nationwide. According to a survey by ARD-Deutschlandtrend, many Germans therefore support government aid for the struggling automakers.

According to the results published on Thursday, a majority of supporters of all political parties favor limiting electric vehicle subsidies to cars produced in Europe—in order to curb cheap competition from China. Sixty-two percent generally want government aid for manufacturers to keep jobs and production in Germany.