Volkswagen approves plan to cut 50,000 jobs and halve its lineup, plants’ fate unclear

Volkswagen’s supervisory board unanimously approved its Future Plan 2030, a restructuring that will cut about 50,000 additional jobs (on top of previously agreed reductions) and substantially reduce the vehicle lineup to address weak demand and intense competition, including from Chinese automakers and pressures such as U.S. tariffs. VW said the cuts are needed to realign staffing with the economic outlook and to target a 9% operating margin by 2030, while reducing complexity to improve costs and economies of scale. In Europe, the company said competitive production for four German plants—Emden, Zwickau, Hanover and Neckarsulm—cannot be guaranteed for 2031 to 2034, though it will explore alternative uses, and it said no immediate factory abandonment is expected through 2030 under existing arrangements. VW also aims by 2035 to cut the lineup by about half and plans a concept for a sustainable European production structure by the end of June 2027. Agreements accompanying the vote emphasized limits on immediate job losses and plant closures despite stakeholder pressure, and the deal gives CEO Oliver Blume stronger backing after months of tense negotiations with unions and regional authorities amid reported earnings declines.