Volkswagen’s Deepening Restructuring: 28,000+ German Job Cuts by 2030

Volkswagen is dramatically accelerating its cost-cutting program, now planning to eliminate more than 28,000 jobs in Germany by 2030 as a binding, group-wide target . The first major milestone aims to shrink the domestic workforce by 19,000 positions before the end of 2026 . This escalation from a previous 35,000 job-cut agreement at the core VW brand alone comes as the company confronts its worst financial performance since the 2015 diesel emissions scandal .

The Financial Pressure Behind the Cuts

The restructuring is a direct response to a severe profit decline. In 2025, Volkswagen's net profit slumped by 44% to €6.9 billion . The company faces a perfect storm of challenges: intense competition from Chinese electric vehicle makers, the impact of U.S. import tariffs, and a slower-than-expected global transition to EVs .

To stabilize its finances, VW has set a broader cost-reduction target of 20% across all brands by 2028, a plan that manager magazin reports could involve closing entire plants . The company has already achieved a 20% reduction in production expenses at its German factories by 2025 .

A Phased Timeline for Workforce Reduction

The job elimination plan is unfolding in stages:

• By late 2025: Approximately 25,000 employees had already signed partial-retirement or severance agreements, with Human Resources Chief Gunnar Kilian confirming in mid-2025 that around 20,000 departures were contractually agreed .
• By the end of 2026: The headcount is slated to drop by 19,000, a progress benchmark CEO Oliver Blume is expected to highlight at the upcoming shareholder meeting .
• By 2030: A binding target of more than 28,000 job cuts will be reached across the entire Volkswagen Group .

A December 2024 landmark deal with the IG Metall union had originally secured a plan to cut 35,000 jobs at the core Volkswagen brand alone in a "socially responsible" manner by 2030, avoiding forced layoffs in favor of natural attrition and buyouts . The newly confirmed 50,000 figure, announced in March 2026, covers all Group brands and represents a dramatic escalation beyond the original union agreement . Annual production capacity in Germany will also shrink, with a planned reduction of more than 700,000 units .

Every Brand Is Affected

The workforce reduction is no longer limited to the core Volkswagen passenger car brand. The job cuts and cost-saving measures now span the entire Group portfolio:

• Volkswagen, Audi, and Porsche: All major automotive brands are included in the restructuring, as confirmed in CEO Blume’s letter to shareholders in the 2025 annual report .
• CARIAD: The Group's software unit is also targeted for cuts .
• Management Restructuring: The core VW brand is flattening its own management structure, planning to reduce its board members by roughly one-third—from 29 to 19—by the summer of 2026 as part of a plan to save about €11 billion by 2030 .

What to Expect at the Annual General Meeting

Volkswagen’s 66th Annual General Meeting will be held virtually on June 18, 2026, at 10:00 a.m. CEST from the Eisbach Filmstudios in Munich .

CEO Oliver Blume will use the meeting to address shareholders directly about the company's financial trajectory and restructuring milestones. According to a published transcript of his prepared speech, Blume will confirm the binding 2030 target and the interim 19,000 job reduction figure, framing the cuts as a necessary response to "continued high competitive pressure" . Shareholders are also expected to vote on a proposed dividend and the reappointment of auditor Ernst & Young (EY) .