WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is evaluating the possibility of cutting up to 50,000 additional jobs across its worldwide operations. The total potential reduction could reach 100,000, including those already agreed upon in Germany. CEO Oliver Blume informed staff that current estimates indicate another 50,000 roles may be impacted across the group. The company has not yet approved a second phase of layoffs nor provided a regional breakdown. Additionally, no final timeline has been established for these further reductions.
The existing German workforce reduction plan encompasses approximately 50,000 jobs at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by 2030. Volkswagen AG itself accounts for 35,000 of these roles. Binding agreements already cover over 28,000 departures through the end of this decade, relying on voluntary resignations, partial retirement schemes, and other negotiated measures. These arrangements spread the workforce reductions over several years, affecting various brands and business units.
As of the end of 2025, Volkswagen’s global workforce numbered 662,942 employees, including those at Chinese joint ventures. In Germany, there were 284,032 employees, while 378,910 worked elsewhere. The total headcount was 2.4% below the 2024 figure. Active employees numbered 628,893, with the remainder in partial retirement or vocational training. The company has yet to specify which countries, plants, brands, or job types may be affected by the additional cuts under review.
Current agreements account for half of potential layoffs
This workforce review coincides 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 as much as 75%. The group also set a target of approximately 9 million vehicles in annual production capacity across all brands. Prior to the pandemic, Volkswagen had invested in capacity for around 12 million units and has since reduced that by 2 million.
The strategy also includes technology platforms, software, factory efficiencies, regional operations, investments, and management structures. Volkswagen indicated that digital tools, artificial intelligence, and shared services will enhance productivity in development and administrative areas. The public presentation did not specify job numbers linked to each initiative, nor did it provide a final list of locations or a schedule for the additional layoffs. CFO Arno Antlitz noted that current programs no longer generate sufficient cost savings.
Global vehicle deliveries dip in first half of 2026
Previous workforce and bargaining measures yielded approximately 1 billion euros in sustainable cost savings in 2025. Volkswagen aims for over 6 billion euros in annual net savings by 2030, which includes the reductions in production capacity already agreed upon. Factory costs at Volkswagen’s German facilities decreased by more than 20% on average in 2025. These figures relate to ongoing measures and do not reflect a fully approved second global job-cut program. IG Metall has opposed compulsory layoffs and factory closures.
During the first half of 2026, Volkswagen delivered 4.13 million vehicles worldwide, representing a 6% decline from the previous year. Deliveries in China fell by 26%, while North America saw a 3.1% decrease. Western Europe experienced a 3% growth, and South America increased by 8%. Battery electric vehicle deliveries totaled 438,500 units, down 6%, though European electric vehicle sales grew by 8%. The existing agreements cover about 50,000 job cuts, while Volkswagen continues to review an additional 50,000 roles without a final plan for implementation.