Volkswagen ups job cuts to 100,000 by 2030 as part of sweeping cost-saving overhaul

The board of Volkswagen has agreed to cut 50,000 more jobs by 2030 as part of a sweeping restructuring programme in an attempt to counter the impact of tariffs and competition from Chinese rivals.The German group – which includes Audi, Porsche, Skoda and the VW brand – said the overhaul would be ‘the most extensive transformation programme’ in its 89-year history.The planned job cuts, which include the 50,000 already agreed, mean a reduction of 100,000 positions by the end of 2030.The firm, which employs around 660,000 people, did not offer further details on the timing of the job cuts or how they would be distributed across its brands and regions.Volkswagen also outlined plans to halve its vehicle line-up by the end of the decade, prioritising the ‘most compelling vehicles’ and aiming to make more of each model to help lower costs.This could trigger up to four factory closures in Germany and could see 76-year-old brand Seat axed entirely from its line up.A ‘fundamental adjustment of the global workforce capability is necessary’ to preserve the competitiveness of the company, it said.Volkswagen plans to cut jobs and halve its vehicle line-up in a bid to counter falling salesVolkswagen describes it as 'the most strategically profound transformation programme' in its history. The German car giant has been hit hard by falling sales in China, once one of its biggest markets, amid rising competition from domestic brands such as BYD. Meanwhile, US sales have declined partly due to the impact of President Donald Trump’s tariffs on car imports.‘This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide,’ Volkswagen Group CEO Oliver Blume said. The Wolfsburg-headquartered company is considering the future of four of its German plants, where it said production capacity exceeds demand.Blume said no new models would be allocated to the Emden, Zwickau, Hanover and Neckarsulm plants unless costs could be brought down.It would also see an acceleration in platform sharing, where cars from various brands under the Volkswagen Group banner share the same mechanical and electric architecture, software and components. The ‘Future Plan’ averts a clash with unions and its second-largest shareholder Lower Saxony, which had been in talks since Blume’s plan first emerged in June. VW employees protested outside the Zwickau factory in July against the restructuring and mass job cut plans set out by the board Volkswagen also outlined plans to halve its vehicle line-up by the end of the decade. It will also accelerate its platform sharing across different brands under the VW Group bannerOn Thursday, Daniela Cavallo, the chief employee representative, said it was ‘a necessity for our company to move successfully into the next decade without the associated undertakings coming only on the side of the employees.’Seat, the Spanish car brand that's been owned by Volkswagen since 1990, could become the biggest casualty of the Future Plan, according to reports.Internal documents seen by automotive title Autocar suggest Seat will be phased out by the end of 2029 at the latest. Cupra, the sporty spin-off of Seat, would be retained and become the company's flagship Spanish offering.Cupra, which in recent years has focussed on sharper-handling electrified vehicles, has become an increasingly popular choice among younger customers at a higher price point than Seat.This has seen Cupra overtake its parent brand in sales, with Cupra delivering 170,100 vehicles in the first half of 2026 compared with 129,600 for Seat.If Seat is to be culled, it will see the death of a manufacturer that had a strong presence in the UK, with its cars being sold here since 1985. Volkswagen Group CEO Oliver Blume said the business is 'taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide' The sweeping cost-saving measures could also see Seat axed from the VW Group line-up by 2029, with the car giant prioritising sportier spin-off CupraIn response to the announcement, shares in Volkswagen rose 7 per cent in early trading this morning. Tom Narayan, analyst at RBC Capital Markets, described the board and union approval as ‘a positive surprise’.‘We think the decision is an important step towards making VW more cost-competitive with Chinese original equipment makers aggressively expanding in Europe,’ he said.Deutsche Bank analysts said that while the agreement did not solve all of Volkswagen's challenges it 'removes one of the biggest investor concerns: whether the company is still capable of making the difficult decisions required to address them'.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. 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