Volkswagen is preparing a sweeping restructuring plan that could see 35,000 jobs cut in Germany by 2030, according to reports. The move is part of a broader push to reduce costs by 20% across all brands by 2028, as Europe’s largest carmaker faces rising expenses, tougher competition in China, and the impact of U.S. tariffs.
In January, Volkswagen’s core brand announced plans to trim management roles and consolidate production platforms to save about €1 billion ($1.2 billion). Oliver Blume, chief executive and Arno Antlitz, finance chief. outlined the larger savings plan during a closed-door meeting with senior executives in Berlin.
The company has already achieved double-digit billion-euro savings through a cost-efficiency programme launched three years ago, which helped offset geopolitical pressures. However, further details on how additional savings will be achieved remain unclear, with reports suggesting that plant closures could be under consideration.
Volkswagen’s works council has pointed to a 2024 agreement with management that rules out plant closures and operational layoffs, aiming to balance competitiveness with workforce protections. Still, the scale of planned reductions has raised concerns among employees and unions.
The automaker continues to face heavy spending demands, including parallel investments in software development, combustion engines, and electric vehicles. The pressures are not unique to Volkswagen—Mercedes-Benz recently warned of declining profit margins and pledged stricter cost discipline, reflecting broader challenges across Europe’s auto industry.
Despite near-term restructuring, Volkswagen reportedly remains committed to its long-term strategy of building more efficient, low-emission vehicles.
In December of 2025, as part of a broader restructuring in the country, Volkswagen Group had offered early retirement to members of its India workforce. That means about 2,300 blue-collar workers were reportedly to be offered the early-retirement scheme. At the time it was reported that the move was aimed at “rationalising the manpower and aligning it with current needs”.
