The Board of Directors of Volkswagen has officially approved a large-scale restructuring plan covering the period up to 2030. According to reports from Bloomberg and AP, the plan envisages reducing the workforce, closing four plants in Germany, and cutting the number of vehicle models produced by nearly half.

Under the plan, up to 50,000 jobs could be eliminated. Furthermore, due to the reorganization of production capacities, four facilities in Germany will cease operations. The winding down of production at the plants slated for closure is expected to be completed between 2031 and 2034.

Plans regarding workforce reductions were first reported in the press in June 2026. These plans have now been officially approved by the company's management.

According to the agreement reached between Volkswagen and the labor union, forced layoffs are not permitted at the company's enterprises until 2030. Therefore, staff reductions will be implemented primarily through voluntary departures and other agreed-upon mechanisms.

Additionally, in March 2026, Volkswagen agreed with the union on the dismissal of 50,000 employees by 2030. With the additional cuts in the new plan, the total reduction of jobs at the company is expected to reach 100,000. Volkswagen currently employs approximately 650,000 people.

The company's management cites aligning the workforce with economic conditions as one of the primary goals of the restructuring. Volkswagen highlights intensifying competition in the automotive market—including the rise of Chinese automakers—technological shifts in the industry, and US customs tariffs on imported vehicles as key challenges facing the company.

The reduction of the model lineup and the optimization of production facilities will form a core part of Volkswagen's long-term strategy aimed at cutting costs and adapting to the conditions of a changing automotive market.