Volkswagen Group to cut 50,000 jobs

The Volkswagen supervisory board unanimously supported the plan prepared by the group's management. It is called the largest recovery program in the history of the German automaker.

Volkswagen expects to sell about 9 million cars per year in the future and increase its annual operating profit to 31 billion euros. At the same time, in 2027-2031, the company plans to invest about 135 billion euros in investments, research and development.

One of the main points of the program will be a significant reduction in the model range. By 2035, Volkswagen plans to approximately halve the number of models, and reduce the number of their equipment variants by 75 percent. The company believes that a smaller number of models will allow each of them to be produced in larger quantities and thus reduce costs by using identical parts and technologies.

Volkswagen has not yet announced which specific models might disappear from production. The remaining cars should attract buyers with modern design and technologies adapted to different markets.

Separately, the group plans to cut about 50,000 jobs, including management positions. It has not yet been specified whether this reduction will affect only enterprises in Germany or also Volkswagen factories and divisions in other countries.

At the same time, the company does not yet plan to directly close factories. Volkswagen acknowledges that the group's production capacities in Europe currently exceed demand. Therefore, the future of four enterprises in Germany is in question — plants in Emden, Zwickau and Hanover, as well as the Audi plant in Neckarsulm. In the 2030s, it may be difficult for them to ensure sufficient utilization to remain competitive. The group intends to look for other uses for these facilities.

Previously, information appeared that Volkswagen was discussing the possibility of re-profiling one of its plants in Osnabrück, including for the production of military products.

Significant changes are also expected for the group's international business. In China, Volkswagen plans to adapt its activities to the local market, where electric car sales have been growing particularly rapidly in recent years. In North America, on the contrary, the company wants to focus on the most profitable segments, as demand for electric vehicles there decreased in 2025 compared to the previous year.

In addition, Volkswagen intends to increase the export of cars manufactured in Germany to countries of the so-called Global South. The group also plans to sell or reorganize part of its assets, review real estate, and make the business structure more compact.

The need for large-scale restructuring at Volkswagen is explained by declining profits. Previously, it was expected that the group could cut up to 100,000 jobs worldwide, so the current plan envisages a smaller scale of layoffs.

However, Volkswagen's position in some markets remains strong. At the end of 2025, the group was the largest seller of electric vehicles in Europe, and at the beginning of 2026, it managed to regain its leading position in the Chinese automotive market.

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