Porsche SE, Volkswagen Group’s largest shareholder, has backed an overhaul aimed at reducing the group’s workforce by roughly 100,000 by 2030. That figure describes a cumulative restructuring objective, not 100,000 new dismissals approved at once: reports characterize roughly 50,000 reductions as already agreed or planned, with another 50,000 under consideration. CEO Oliver Blume presented the plan to Volkswagen’s Supervisory Board. It is intended to address financial pressure and put the automaker on firmer footing for the long term.
The figures cover different parts of the business. In December 2024, Volkswagen AG and IG Metall reached the “Zukunft Volkswagen” agreement, which provides for a socially responsible reduction of more than 35,000 jobs at German sites by 2030. Volkswagen AG’s subsequent 2030 target adds another 12,000 positions across the company, covering its basic brand as well as basic functions and component operations. These figures fall within the broader group objective, but they are not interchangeable totals. Volkswagen has also maintained an employment-security commitment through the end of 2030.
The German locations under discussion are Hannover, Zwickau and Emden for the Volkswagen brand, plus Neckarsulm for Audi. Together, the four plants employ more than 45,000 people. Immediate closure is not automatic: the sites have until June 2027 to develop alternative production concepts, while arrangements beyond 2031 remain open. Their longer-term role depends on whether viable production plans can be established.
The broader cost program reflects Volkswagen’s effort to restore competitiveness amid excess capacity and the shift to electric vehicles, with Chinese competition and tariff costs adding pressure. Targets include €20 billion in value-chain cost reductions by 2030 and a further €11 billion reduction in overhead costs. Workforce measures form part of a wider effort to lower the group’s fixed-cost base and reshape its operations.
Implementation still depends on renewed negotiations with IG Metall. Discussions cover how to carry out the planned reductions and use transfer companies, with support from Germany’s Federal Employment Agency, to help affected employees retrain and move into other work. Volkswagen said it would “welcome the start of negotiations now,” while its employment-security commitment remains in place through 2030. The talks will shape how additional reductions proceed and how the plants’ future production concepts are put into practice.
The financial backdrop is stark. Porsche SE reported a first-half loss of €2.2 billion, compared with a €338 million profit in the same period of 2025. The holding company cited €3 billion in impairment losses on its Volkswagen stake and a further €200 million on Porsche AG, adding to pressure on the group to improve its financial performance.
Volkswagen’s restructuring comes as European automakers face regulatory and market pressure. The group has sought new strategies to meet EU emissions targets, including a partnership with Chinese EV manufacturer XPeng. Detailed in a recent report on Porsche’s use of XPeng’s emissions credits, the move reflects how traditional carmakers are adapting to stricter environmental rules and changing consumer demand. For more on this strategic shift, see how Porsche is collaborating with XPeng to comply with EU emissions regulations.
Volkswagen’s plan ranks among Europe’s most ambitious automotive restructuring efforts, pairing workforce reductions with cost-cutting and decisions about future production. The coming years will show whether the group can make those changes while honoring employment commitments and restoring investor confidence.
