WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is evaluating the possibility of cutting up to 50,000 jobs across its worldwide operations. The total potential reduction could reach 100,000 when including layoffs already agreed upon in Germany. CEO Oliver Blume informed staff that current estimates indicate another 50,000 roles could be eliminated throughout the group. Volkswagen has not yet approved a second phase nor provided a regional breakdown, nor finalized a schedule for these additional cuts.
The existing German workforce reduction plan targets approximately 50,000 jobs at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by 2030. Volkswagen AG accounts for 35,000 of these positions. Binding agreements already encompass more than 28,000 departures through the end of the decade, relying on voluntary exits, partial retirements, and negotiated measures. These agreements plan the reductions over several years, spanning multiple brands and business units.
At the end of 2025, Volkswagen’s global workforce numbered 662,942 employees, including staff at Chinese joint ventures. Of these, 284,032 were based in Germany, with 378,910 employed elsewhere. The total workforce was 2.4% below the 2024 level. Active employees totaled 628,893, with others in partial retirement or vocational training. Volkswagen has not disclosed which countries, plants, brands, or job categories might be affected by the additional reductions under review.
Existing agreements cover half of the potential layoffs
This workforce review runs concurrently with 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 up to 75%. The group also set a target to produce about 9 million vehicles annually across all brands. Before the pandemic, Volkswagen invested in capacity for roughly 12 million vehicles but has since scaled back by 2 million.
The plan includes technology platforms, software, factory efficiencies, regional operations, investments, and management structures. Volkswagen indicates that digital tools, artificial intelligence, and shared services will enhance productivity in development and administrative areas. The public presentation did not specify job numbers for each initiative, nor did it provide a final list of locations or a timetable for the additional reductions. CFO Arno Antlitz noted that current programs no longer generate sufficient cost savings.
Vehicle deliveries decline in first half of 2026
Previous workforce and bargaining measures contributed approximately 1 billion euros in sustainable cost savings during 2025. Volkswagen aims for over 6 billion euros in annual net savings by 2030, including the reductions in production capacity already agreed. Factory costs at German sites decreased by more than 20% on average in 2025. These figures relate to measures already underway, not a fully approved second global job-cut plan. IG Metall has opposed compulsory layoffs and factory closures.
In the first half of 2026, Volkswagen delivered 4.13 million vehicles worldwide, a 6% drop from the previous year. Deliveries declined by 26% in China and 3.1% in North America. Meanwhile, Western Europe experienced 3% growth, and South America gained 8%. Battery electric vehicle deliveries totaled 438,500, down 6%, although electric vehicle sales in Europe increased by 8%. The existing agreements cover about 50,000 layoffs, while Volkswagen continues to review an additional 50,000 positions without a final plan for implementation.