Volkswagen Targets 100,000 Job Cuts and Reviews Future of German Production Sites
Key Facts
Volkswagen plans to cut around 100,000 jobs across the group, after the transformation plan approved in September added cuts of around 50,000 jobs to the 50,000 previously agreed. The supervisory board unanimously approved the 2030 future plan on 3 September 2026, the company said. The plan puts the future of German production sites within a broader test of the group’s ability to align its factories with demand. The company said it cannot currently guarantee competitive future production allocations for some sites in phases between 2031 and 2034, and is studying alternative uses. This wording does not amount to a final decision to close factories; it reflects that continued production at those sites has yet to be decided.
The site review comes amid a mismatch between production capacity and demand in Europe. Volkswagen said its European production capacity exceeds demand by around 500,000 units, prompting it to prepare a blueprint for a sustainable and competitive European production structure by the end of June 2027. The timeline extends beyond preparation of the blueprint: production allocations for the sites in question are tied to phases between 2031 and 2034. This means a decision on the factories’ future use will depend on the broader production plan and its ability to compete. The company is also targeting a simpler lineup, with a roughly 50% reduction in the number of models under its restructuring programme.
Results for the first nine months of 2026 show the severity of the financial pressures facing the group. Revenue was 233.4 billion euros, compared with 238.7 billion euros in the same period of 2025, while operating profit fell to 0.1 billion euros from 5.4 billion euros. Vehicle deliveries also reached 5.9 million, down 11% from 6.6 million a year earlier. Chief Financial Officer and Chief Operating Officer Arno Antlitz said U.S. tariffs were weighing on the company, the Chinese market was contracting and competitive pressure in Europe was increasing. He added that electric cars currently generate lower profits than combustion-engine vehicles, intensifying the challenge of the transition as results decline.
The company agreed in December 2024 with employee representatives to cut more than 35,000 jobs at its German sites in a socially responsible manner by 2030, as part of a plan to protect jobs through that year. In an interview published in July 2026, Chief Executive Oliver Blume said an earlier agreement targeted cuts of around 50,000 jobs in Germany at Volkswagen, Audi, Porsche and Cariad by 2030. He said at the time that 37,000 voluntary departure agreements had been signed, with around 27,000 employees expected to leave by the end of 2026. The 2030 future plan adds cuts of around 50,000 jobs across the group to the previous reductions. The programme combines workforce reductions with a reshaping of production and model lineups, while the factory review extends beyond 2030.
The 2026 financial outlook reflects a sharp decline from previous profitability levels. Volkswagen cut its forecast for the operating return margin to as much as 1%, compared with 2.8% in 2025 and a previous 2026 forecast range of 4.0% to 5.5%. The company attributed the revision to market deterioration, particularly in China, and an accelerating shift in demand toward electric cars. It also expected exceptional items of around 10 billion euros to weigh on operating profit during the year, including a non-cash impairment of around 6 billion euros related to the Porsche division. These figures provide the financial context for the job-cut plan and production-site review, as the group seeks to address falling profitability and adjust its production capacity.
In the market, Volkswagen’s shares, listed under the symbol VWAGY, fell from a close of 7.80 dollars on 9 November to 7.32 dollars on 13 November 2026. In an earlier restructuring announcement on 4 September, the shares rose 8% that day, according to the Associated Press. Under its plan for the 2027 to 2031 period, the company is targeting capital investment and research and development spending of 135 billion euros, with detailed items to be presented to the supervisory board later. The group’s 2026 outlook includes revenue of around 315 billion euros, an operating return margin of up to 1%, and net cash flow for the automotive division of between 3 and 6 billion euros. The next step in the production review is to prepare the European blueprint by the end of June 2027, ahead of production-allocation phases for the sites between 2031 and 2034.