WOLFSBURG, GERMANY / RankWire.AI / – Volkswagen is currently evaluating potential layoffs of up to 50,000 employees worldwide. The total possible reduction, including already agreed cuts in Germany, could reach 100,000. CEO Oliver Blume informed staff that current estimates indicate another 50,000 jobs could be affected across the company. Volkswagen has not yet authorized a second phase of layoffs, nor has it provided a regional breakdown or a definitive timeline for these additional cuts.
The existing German program targets approximately 50,000 positions at Volkswagen, Audi, Porsche, and the software subsidiary CARIAD by 2030. Volkswagen AG is responsible for 35,000 of these roles. Binding agreements already facilitate over 28,000 departures through the end of the decade, relying on voluntary resignations, early retirements, and negotiated measures. These arrangements distribute reductions over several years, spanning multiple brands and divisions.
At the end of 2025, Volkswagen had a global workforce of 662,942 employees, including staff at Chinese joint ventures. In Germany, there were 284,032 employees, while 378,910 worked elsewhere. The total headcount was 2.4% below the 2024 figure. Active employees numbered 628,893, with others engaged in partial retirement or vocational training. Volkswagen has not specified which countries, plants, brands, or job types might be impacted by the additional reductions under review.
Current agreements cover half of the potential layoffs
This workforce review is part of a broader plan presented to the supervisory board on July 9. The executive board outlined 12 strategic initiatives and a target organizational structure for 2030. Volkswagen aims to cut its model lineup by up to 50% and reduce equipment options by up to 75%. The group also set an annual production capacity goal of around 9 million vehicles, down from nearly 12 million before the pandemic, which had included capacity for about 12 million vehicles before removing 2 million.
The plan also encompasses technology platforms, software development, manufacturing efficiency, regional operations, investments, and organizational management. Volkswagen stated that digital tools, artificial intelligence, and shared services will enhance productivity in both development and administrative tasks. The announcement did not specify job figures for each initiative, nor did it provide a final list of locations or a timetable for the additional layoffs. CFO Arno Antlitz noted that existing programs no longer yield sufficient cost savings.
First-half global vehicle deliveries decline
Previous workforce adjustments and bargaining agreements resulted in approximately 1 billion euros in sustainable cost savings during 2025. Volkswagen aims for over 6 billion euros in net annual savings by 2030, which includes reductions in production capacity already agreed upon. Factory costs at German plants decreased by more than 20% on average in 2025. These figures relate to measures already implemented and do not reflect a fully approved second global job-cut initiative. IG Metall has opposed compulsory layoffs and plant closures.
In the first half of 2026, Volkswagen delivered 4.13 million vehicles worldwide, a 6% decrease from the previous year. Deliveries dropped 26% in China and 3.1% in North America. Western Europe experienced a 3% growth, while South America increased by 8%. Battery electric vehicle deliveries reached 438,500 units, down 6%, although electric vehicle sales in Europe grew by 8%. The existing agreements account for approximately 50,000 layoffs, with Volkswagen still reviewing another 50,000 positions without a final plan for implementation.