Volkswagen is all set to cut approximately 50,000 more jobs worldwide by 2030. This comes as the German automaker upgrades its restructuring efforts amid intensifying competition, weak demand and rising costs.
The company’s supervisory board approved its Future Plan 2030 on September 3. The latest workforce reduction is a part of an earlier programme targeting a similar number of jobs. The measures could reduce Volkswagen’s workforce by around 100,000 positions as the company seeks to improve competitiveness.
Volkswagen said, “It has so far been unable to identify competitive vehicle-production allocations for Emden, Zwickau, Hanover and Neckarsulm for the period between 2031 and 2034. Rather than announcing immediate closures, it would explore other potential uses for the plants.”
The automaker further explained, “The additional workforce adjustment reflects changing market conditions, technological shifts and growing global competition. Volkswagen is also dealing with significant excess production capacity in Europe.”
Despite the job cuts, Volkswagen plans to invest heavily in its future businesses. The group has outlined around €135 billion in capital expenditure and research and development between 2027 and 2031.
The company will also simplify its corporate structure, streamline its investment portfolio and reduce organisational complexity. Volkswagen said the measures are designed to make decision-making faster and improve the group’s long-term competitiveness.
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