Volkswagen has announced a comprehensive restructuring plan, the largest ever in the global automotive industry, involving the loss of approximately 100,000 jobs by the end of the decade. This total represents about 15% of the carmaker's worldwide staff.
The German auto giant is facing fierce competition from Chinese rivals, US tariffs, and rapidly advancing technology. These pressures have led the company to implement a sweeping cost-cutting plan to remain competitive.
The supervisory board has backed the overhaul, giving CEO Oliver Blume a mandate to remake Europe's largest carmaker. The strategy includes cutting a further 50,000 positions by 2030, halving the product line, and reducing the company's overall industrial footprint.
As part of these measures, Volkswagen stated that the future of four German plants cannot be assured into the 2030s. Management and unions have agreed to the plan as the company navigates these industry challenges.