Volkswagen approves Future Plan 2030, cuts 50,000 jobs

Volkswagen’s supervisory board on Thursday approved Future Plan 2030, ordering a group-wide reduction of about 50,000 jobs and a roughly 50% cut to its model range by 2035. The decision passed unanimously and includes management positions.

The plan sets out 12 initiatives that aim for annual sales of 9 million vehicles and an operating margin of 9% by 2030, equivalent to an operating result of about EUR 31 billion.

Volkswagen has earmarked EUR 135 billion for capital expenditure and research from 2027 through 2031 to support the transformation.

The company said European production capacity exceeds demand by more than 500,000 units and noted that output at its Emden, Zwickau, Hanover and Neckarsulm plants cannot currently be secured for the 2031–2034 period. A concept for future European production is due by the end of June 2027.

The plan doubles a workforce-reduction programme already under way at the group. Volkswagen did not provide a timetable for when the reductions will take effect or how cuts will be distributed across its brands. Management and works councils were involved in approving the plan.

CEO Oliver Blume described the vote as a signal of intent for the company’s future and set out the investment plans: “Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”

Future Plan 2030 follows earlier restructuring at the group and aims to align capacity and costs with expected demand and the industry’s transition to electric vehicles.