Volkswagen approves record 100,000 job cuts in global auto reshuffle
Volkswagen agreed to eliminate one million jobs over the next decade as part of the largest restructuring ever in automotive history, while Jaguar Land Rover also announced a four thousand position reduction.
The German automaker group finalized an agreement to remove 100,000 workers worldwide. Management and unions reached terms for an additional 50,000 cuts by the end of the decade, adding to a previously approved 50,000 reduction. This brings the total to approximately 15% of Volkswagen's global workforce, making it the biggest industrial restructuring in automotive history. Volkswagen cited US tariffs, inconsistent electric vehicle demand, and aggressive competition from Chinese manufacturers as primary drivers for the decision. The company stated that aligning staff levels with economic realities was essential. Historical records show previous major layoffs by General Motors and Ford totaling fewer than 120,000 jobs combined, underscoring that Volkswagen's total far exceeds prior industry standards.
Jaguar Land Rover confirmed a separate plan to cut around 4,000 global positions over the next two years. Chief executive PB Balaji explained the reduction focuses on salaried and management roles rather than manufacturing staff. The savings aim to lower the break-even sales target from roughly 325,000 vehicles annually to approximately 300,000 units. Despite these contractions, JLR intends to invest between £15 billion and £18 billion over five years in electrification and digital technologies. Revenue for Jaguar Land Rover fell 9.6% compared to the previous year due to supply chain issues, cyberattack disruptions, and tariff impacts.
