Volkswagen Cuts 50000 More Jobs in Largest Restructuring in Company History

Volkswagen's supervisory board unanimously approved a major restructuring plan on September 3, 2026, that includes cutting 50,000 additional jobs worldwide.

The company had previously planned to eliminate 50,000 positions. The new directive brings total planned workforce reductions to approximately 100,000 roles, making it the most significant overhaul in the company's 89-year history.

CEO Oliver Blume said the cuts are necessary to strengthen Volkswagen's long-term position and allow continued investment in future technologies. The company faced approximately $3.4 billion in tariff-related costs in the previous year and has seen declining profits.

The restructuring plan also includes simplifying the management structure and reducing the total vehicle model lineup by approximately 50 percent by 2035. Volkswagen is evaluating new purposes for four of its German factories as production at those sites winds down over the next decade.

Investors responded positively to the announcement. Volkswagen shares reached their highest level in nearly three months by the end of the week. Financial analysts at Deutsche Bank called the move a "fundamental breakthrough."

The company has faced intense competition from Chinese automakers, particularly in the electric vehicle segment. Reduced sales in China, once a key growth market for Volkswagen, have added to the financial pressure.