Volkswagen doubles job cut plans to 100,000 by 2030

Key Facts

1Volkswagen plans to accelerate job cuts to up to 100,000 by 2030, from a previous target of 50,000, and reduce German production capacity by 500,000 vehicles.

At a time of profound shifts in the global auto industry, Volkswagen announced plans to accelerate job cuts to up to 100,000 by 2030, double its previous target of 50,000, and reduce German production capacity by 500,000 vehicles, according to media reports. The move comes as the company faces growing competitive pressure from Chinese electric vehicle makers and sluggish European demand.

Volkswagen’s American depositary receipt (VWAGY) closed at $8.87 on June 25, reflecting broader sector weakness. Rivals such as Mercedes-Benz and BMW have launched similar cost-cutting programs, signaling a structural crisis in the German auto industry. Recent data showed EU new car sales rose only 3.2% in May, underscoring a slow recovery.

Investors are watching the impact of these massive layoffs on Volkswagen’s profitability in coming quarters, especially amid potential labor union pushback. Markets will also focus on the company’s Q2 results due in July and any updates on its EV strategy. Technically, support at $8.84 (last session’s low) remains a key level for the stock.