8:29 am, September 4, 2026
Volkswagen Group has announced a major cost cutting exercise which could see as many as 50,000 jobs lost.
The German firm has found itself under increased pressure from Chinese rivals over recent years and bosses hope the new ‘Future Plan 2030’ will help to keep it competitive.
The plan has been unanimously approved by Volkswagen’s Supervisory Board, which is also said to have given the green light to phase out the Seat brand by 2029.
Under the plans, Volkswagen Group will reduce its model portfolio by around half while also cutting the complexity of its remaining range.
The number of trim levels and specifications offered will be reduced by around 75%, with the group aiming to simplify production and reduce costs.
Volkswagen will also cut its workforce by around 50,000 positions in sweeping cuts that go ‘beyond existing programs’.
It means that job losses will be made on top of workforce reductions already announced or under way across the group.
Volkswagen Group chief executive Oliver Blume said the board’s approval of the plan was a ‘strong sign for the future’
He said: ‘The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today. This is a strong sign for the future of the Volkswagen Group. We are taking responsibility for our entire team, for our partners and for industrial jobs worldwide.
‘Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”
‘The group is also looking to develop both its North American and Chinese areas of business, with the former being one of its ‘most profitable segments.’
The group also plans to focus on expanding its businesses in North America and China.
Volkswagen described North America as one of its ‘most profitable segments’ as it looks to strengthen its position in both markets.
Supervisory board chairman Hans Dieter Pötsch said the approval of the Future Plan meant the company’s transformation was being ‘driven forward with full force’.
The precise models and variants affected by the planned reductions have not been disclosed, although bosses have refused to deny rumours that Seat will be ditched.