HCM & HRIS

Volkswagen flags 50,000 job cuts across group as board approves turnaround plan

September 4, 2026
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  • Updated On Sep 5, 2026 at 01:05 AM IST

Frankfurt-listed Volkswagen ​shares closed 7.9% higher following the news, reflecting relief over what sources said could have escalated into an unprecedented crisis at Europe's largest automaker />By Christina Amann, Christoph Steitz and Mrinmay Dey<br><br>Volkswagen’s supervisory board on Thursday ‌approved a transformation plan ⁠that ⁠will include cutting another 50,000 jobs in its attempt to counter painful tariffs, overcapacity and aggressive Chinese rivals.<br><br><!– PROMOSLOT_M –>The plan, the most extensive ​restructuring in Volkswagen’s 89-year history, includes exploring alternatives for four German plants that will eventually run out of models during the ​next decade.<br><br><div class=” article-detail-ad-slot=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/133749943.cms” height=”442″ loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” width=”590″></img></p> </div> <p>It also averts a major clash with unions by putting the scenario of an extraordinary general meeting on the backburner, a scenario that was considered by management to push through its plans against workers and Volkswagen’s ​second-largest shareholder, Lower Saxony.</p> <p>The deal will result in a simplification of ⁠Volkswagen’s conglomerate structure ‌and limit the influence of the group’s supervisory board – on which unions and Lower ​Saxony hold a majority – ​on key decisions.</p> <p>“This is a strong signal for the future of the ⁠Volkswagen Group. We are taking responsibility for our entire workforce, for our partners ​and for industrial jobs worldwide,” CEO Oliver Blume said in a statement.</p> <p>Frankfurt-listed Volkswagen ​shares closed 7.9% higher following the news, reflecting relief over what sources said could have escalated into an unprecedented crisis at Europe’s largest automaker.</p> <p>Industry analyst Ferdinand Dudenhoeffer said the next 10 months would see discussions over the future of Volkswagen’s plants in Emden, Zwickau, Neckarsulm and Hannover, which all face a staggered phase-out from 2031 onwards.</p> <p>The deal follows weeks of tense negotiations that pitted the board and majority owner Porsche SE against ‌unions and Lower Saxony, with the idea of a spinoff of Volkswagen’s passenger car and components businesses no longer being mentioned.</p> <p>“A certain sense of calm is returning, but it ​is far from ‘peace’. ​In politics, one would call ⁠it a ‘ceasefire’. That’s a good thing, because now the focus can be on the business,” Dudenhoeffer said.</p> <p>The “Future Plan” comes as Volkswagen faces pressure from all sides, squeezed between U.S. import tariffs and a weak Chinese market, the ​world’s biggest car market and once the group’s cash cow.</p> <p>Volkswagen said “a further fundamental adjustment of the global workforce capacity” was needed, saying this would include a reduction of around 50,000 positions worldwide – in addition to a 50,000-job reduction already under way.</p> <p>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.</p> <p>(Reporting by Mrinmay Dey, Christoph Steitz and Christina Amann; Editing by Shailesh Kuber, Rod Nickel and Stephen Coates) </p> <div> <div> <ul> <li><a href=Reuters

  • Published On Sep 4, 2026 at 08:04 AM IST

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