Volkswagen to cut 19,000 jobs in Germany as it accelerates electric‑vehicle shift

Volkswagen AG announced it will reduce its German workforce by 19,000 employees by the end of 2026, part of a broader plan to cut 50,000 jobs across the group by 2030. CEO Oliver Blume said the company’s traditional business model is no longer viable and that further drastic measures will be taken in the summer. The cuts accompany a reduction in production capacity, with a target to trim annual output by 500,000 vehicles in the near term and by one million by 2028.

The restructuring comes as Volkswagen faces declining profitability and mounting competition from Chinese manufacturers, especially BYD, which now accounts for one in ten electric cars delivered in Europe. The group aims to strengthen its position in the electric‑vehicle market by launching lower‑priced models such as the ID Polo and expanding its battery and software capabilities. Cost‑saving measures have already delivered about €1 billion in savings, and the company seeks to restore operating margins to 8‑10% by 2030.