Volkswagen approves £50,000 job cuts to reach 100,000 total reductions by 2030
Volkswagen's board approved a plan to cut another 50,000 jobs. Combined with previous moves, the group aims to slash a total of 100,000 roles by 2030 to improve efficiency and reduce model variety.
The board of Volkswagen Group has formally approved a restructuring plan to eliminate an additional 50,000 positions. This decision brings the total number of jobs the automotive conglomerate intends to cut by 2030 to 100,000 roles. The group is evaluating the future of four German plants as part of this overhaul. Oliver Blume, chief executive, stated that a fundamental adjustment to workforce capability was necessary to maintain competitiveness against shifting demand and new technology.
The firm faces declining profits due to falling sales and increased competition, particularly from Chinese brands. Beyond employment reductions, Volkswagen plans to cut the number of vehicle models produced by 50% by 2035 and reduce product complexity by 75%. The company aims to prioritize "compelling vehicles" and increase production volumes per model to lower costs.
Shares in Volkswagen rose approximately 7% in Frankfurt on Friday morning. In a related development, Jaguar Land Rover (JLR) confirmed a voluntary redundancy programme. While specific numbers are unconfirmed by JLR, reports indicate potential losses of up to 4,000 jobs over two years as it seeks to save £1.7 billion. The company has also faced production halts due to a cyberattack and tariffs from the United States.
