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[BUSINESS] · Germany · 13 sources

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Volkswagen approves restructuring plan including 50,000 global job cuts

Volkswagen has reached a unanimous agreement on a 'Future Plan' aimed at restructuring the company and achieving significant savings. The plan includes reducing annual production to nine million vehicles and increasing the operating return on sales to nine percent.

As part of this restructuring, the company expects to cut approximately 50,000 jobs globally in the coming years. Several key locations are under pressure, including Volkswagen plants in Emden, Hannover, and Zwickau, as well as the Audi facility in Neckarsulm. The board has stated it cannot currently guarantee competitive follow-up occupancy for these sites between 2031 and 2034, though no immediate closures have been finalized. A concept for a competitive European production structure is expected by mid-2027.

Economic psychologist Uwe Kanning has warned that the crisis could damage Volkswagen's employer brand. He noted that while the total number of job applications might not drop significantly, the quality and suitability of applicants could decline as the company's image suffers, making it harder to attract high-performing talent.

Entities

Audi · Neckarsulm · Oliver Blume · Uwe Kanning · Volkswagen

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