Volkswagen Announces Major Restructuring: Up to 50,000 Jobs to Be Cut in Germany
German automotive giant Volkswagen Group has clarified the scope of its large-scale restructuring plan in Germany. According to the company’s latest announcements, cost-cutting programs across the group could lead to the departure of around 50,000 employees by 2030.
The group includes well-known brands such as Audi, Bugatti, SEAT, Škoda, and Porsche, all of which may be affected by the restructuring measures.
CEO Oliver Blume Announces Plan
The announcement was made by Oliver Blume, CEO of Volkswagen Group, in a letter sent to shareholders alongside the company’s 2025 financial results.
The restructuring program will affect several brands operating in Germany. Under the plan:
- Audi is expected to eliminate about 7,500 positions by 2029.
- Porsche plans to cut around 3,900 jobs, including temporary staff.
- The group’s software division Cariad will also undergo workforce reductions.
Workforce in Germany Could Fall to 250,000
According to the company’s annual report, Volkswagen Group employed approximately 293,000 people in Germany at the end of 2024.
If the full restructuring plan is implemented, this figure could drop to around 250,000 employees. However, the company noted that limited hiring may still take place in certain strategic areas.
Largest Cuts Expected at Volkswagen Brand
The largest share of job reductions is expected to occur within the core Volkswagen brand itself.
In late 2024, the company reached an agreement with labor unions to reduce 35,000 positions in Germany by 2030 as part of its cost optimization strategy.
These reductions will primarily affect the brand’s core operations, although other group brands will also implement cost-saving measures.
Profitability Has Declined Sharply
Volkswagen’s financial results help explain the motivation behind the restructuring.
In the 2025 fiscal year, the group reported €321.9 billion in revenue, slightly down from €324.7 billion the previous year.
However, profitability declined significantly:
- Operating profit dropped to €8.9 billion, nearly half of the previous level.
- Net profit fell from €10.7 billion to €6.7 billion, a 38% decline.
As a result, the company’s operating margin fell to 2.8%, one of its lowest levels since the Dieselgate emissions scandal period.
Comprehensive Transformation Ahead
According to CEO Oliver Blume, the transformation program will extend far beyond workforce reductions.
Departments including research and development, procurement, sales, quality management, and production will all be required to reduce costs and improve efficiency.
Additionally, Volkswagen plans to simplify its organizational structure and centralize certain strategic functions to improve overall efficiency across the group.
