Volkswagen Plans Another 50,000 Job Cuts as Board Approves Major Restructuring

Volkswagen's supervisory board has approved a major transformation plan that includes reducing its global workforce by around 50,000 positions, as the automaker responds to tariffs, excess production capacity and growing competition from Chinese manufacturers.

The restructuring is described as the largest in Volkswagen's 89-year history. The company will also examine alternative uses for four German plants in Emden, Zwickau, Neckarsulm and Hannover, which are expected to gradually lose their current models from 2031 onward.

The agreement also reduces the possibility of a major confrontation with unions and Volkswagen's second-largest shareholder, the German state of Lower Saxony. A previously considered extraordinary general meeting to push the restructuring plan through has been put aside.

Under the agreement, Volkswagen will simplify its group structure and reduce the supervisory board's influence over certain major decisions. Unions and Lower Saxony currently hold a majority of seats on the supervisory board.

CEO Oliver Blume said the company was taking responsibility for its workforce, partners and industrial employment worldwide.

Volkswagen's shares listed in Frankfurt rose 7.9% following the announcement, reflecting investor relief after weeks of difficult negotiations between management, Porsche SE, unions and Lower Saxony.

The restructuring comes as Volkswagen faces pressure from U.S. import tariffs and weakness in the Chinese market. The company said it needed another major adjustment to its global workforce capacity.

The planned reduction of around 50,000 positions will be in addition to 50,000 job cuts already underway. Volkswagen has not yet disclosed when the additional reductions will take place or how they will be divided among its brands and regions.