WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is evaluating the possibility of cutting up to 50,000 jobs across its worldwide operations. The total potential layoffs could reach 100,000 when including those already agreed upon in Germany. CEO Oliver Blume informed staff that current estimates suggest an additional 50,000 roles could be eliminated across the company. Volkswagen has yet to approve a second phase of cuts or provide a regional breakdown, nor has it announced a timeline for the new reductions.
The current German plan targets approximately 50,000 positions at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by 2030. Of these, Volkswagen AG accounts for 35,000 roles. Binding agreements are in place for over 28,000 departures through the end of the decade, relying on voluntary departures, partial retirements, and other negotiated measures. These reductions are scheduled over several years, affecting various brands and business units.
At the end of 2025, Volkswagen’s global workforce numbered 662,942 employees, including staff at Chinese joint ventures. In Germany, there were 284,032 employees, while 378,910 worked outside the country. The overall headcount was 2.4% below the 2024 figure. Active employees totaled 628,893, with the remainder in partial retirement or vocational training. Volkswagen has not specified which countries, plants, brands, or job categories will be affected by the additional cuts under review.
Existing agreements account for half of the potential layoffs
This workforce review runs parallel to a broader strategy presented to the supervisory board on July 9. The executive board outlined 12 initiatives and a target structure for 2030. Volkswagen aims to reduce its model lineup by up to 50% and cut equipment options by as much as 75%. The group also set a target production capacity of roughly 9 million vehicles annually, down from the pre-pandemic investment capacity of about 12 million, which has since been reduced by 2 million.
The strategy also encompasses technology platforms, software, factory efficiency, regional operations, investments, and management structures. Volkswagen emphasized that digital tools, artificial intelligence, and shared services will enhance productivity in development and administrative areas. The announcement did not specify job numbers or provide a detailed timeline or location list for the additional layoffs. CFO Arno Antlitz noted that current programs are insufficient to achieve necessary cost savings.
First-half decline in global vehicle deliveries
Previous workforce and bargaining measures delivered approximately 1 billion euros in sustainable cost savings in 2025. Volkswagen aims to realize over 6 billion euros in annual net savings by 2030, which includes the already agreed reductions in production capacity. Factory costs at German sites decreased by more than 20% on average in 2025. These figures relate to measures already in progress, not a fully approved second global job-cut initiative. IG Metall has opposed compulsory layoffs and factory closures.
During the first half of 2026, Volkswagen delivered 4.13 million vehicles worldwide, marking a 6% decline compared to the same period last year. Deliveries in China decreased by 26%, while North America saw a 3.1% drop. Conversely, Western Europe experienced a 3% growth, and South America increased by 8%. Battery electric vehicle deliveries totaled 438,500, down 6%, though European electric vehicle deliveries grew by 8%. The existing agreements cover around 50,000 layoffs, with Volkswagen still reviewing another 50,000 roles without a finalized plan for implementation.