Volkswagen board approves turnaround plan with 50,000 possible job cuts

September 4, 2026 at 02:29 AM1 min

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Volkswagen's supervisory board unanimously approved a transformation plan on Thursday that could cut another 50,000 jobs worldwide. The plan includes exploring alternatives for four German plants and simplifying the conglomerate structure. The decision follows weeks of tense negotiations between management, unions, and Lower Saxony.

Key Facts

Volkswagen's supervisory board unanimously approved the transformation plan on September 3, 2026.
The plan could include cutting another 50,000 jobs worldwide, in addition to a 50,000-job reduction already under way.
Volkswagen will explore alternatives for four German plants with no firm production plans for the next decade.
CEO Oliver Blume called the plan a strong signal for the future of the Volkswagen Group.

The Turnaround Plan

Volkswagen's supervisory board unanimously approved the transformation plan on September 3, 2026. The plan is the most extensive restructuring in Volkswagen's 89-year history. It includes exploring alternatives for four German plants with no firm production plans for the next decade. The plan also simplifies Volkswagen's conglomerate structure and limits the influence of the supervisory board on key decisions.

Workforce Reduction

Volkswagen said a further fundamental adjustment of the global workforce capacity was needed. This would include a reduction of around 50,000 positions worldwide, in addition to a 50,000-job reduction already under way. The company did not provide further details on the timing of the workforce reduction or how the cuts would be distributed across its brands and regions.

Negotiations and Pressures

The deal follows weeks of tense negotiations that pitted the board and majority owner Porsche SE against unions and Lower Saxony. Management considered an extraordinary general meeting to push through its demands. Volkswagen cited increasing global competitive pressure, changing demand patterns, and technological change in the automotive industry as reasons for the planned measures.