Volkswagen Group's supervisory board unanimously approved a "Future Plan 2030" on Thursday, endorsing a sweeping restructuring that will cut 50,000 additional jobs and halve the automaker's model lineup by 2035. CEO Oliver Blume described the company's situation as "more than critical."
The plan deepens cuts that have already begun: VW reduced its workforce by approximately 17,000 positions in 2025 and 8,000 the year before. The new round of 50,000 cuts means the company will eliminate roughly twice as many jobs over the coming years as it did in the previous two years combined.
Model Lineup Halved, Complexity Cut 75%
The most dramatic structural change is a plan to reduce VW Group's model portfolio by approximately 50 percent by 2035, with offering complexity cut by 75 percent. Fewer models in fewer variants are intended to drive higher per-model volumes and lower costs. North America will see particularly aggressive trimming.
The group aims to stabilize worldwide vehicle sales at roughly 9 million units — the 2024 level — while investing approximately EUR 135 billion in physical assets and R&D over the five-year period from 2027 to 2031.
Plants in Limbo
Four German plants — Hannover, Emden, Neckarsulm, and Zwickau — will have their "alternative usage options" evaluated, as "no competitive follow-up allocation can be guaranteed" in a phased manner from 2031 to 2034. The signals suggest these facilities could face closure or conversion.
The plan also calls for reducing VW Group's portfolio of business holdings by one-third, freeing up capital. "Non-strategic activities will be divested or restructured," the company said. "The real estate portfolio will also be reviewed," signaling willingness to sell.
Competitive Pressure
The restructuring is driven primarily by intensifying competition from Chinese automakers and the costly transition to electric vehicles. VW's net profit after tax fell roughly 44 percent in 2025, dropping to its lowest level since 2016. The company's finance chief warned that profit margins are "not sufficient in the long run."
In China, VW plans to reduce its engagement while shifting focus to the "Global South" — but cost competitiveness will need to improve across the board.
Labor Relations
In an unusual display, both management and labor representatives supported the plan. Daniela Cavallo, chair of VW Group's works council, said the plan "protects the balance between employment security and economic viability." IG Metall deputy chair Christiane Benner called it proof that "all parties advance best when difficult future topics are tackled decisively together."
Some industry analysts, however, believe even 50,000 cuts may not be enough.
