Volkswagen says cutting 100,000 jobs by end of decade

German car giant Volkswagen said on Thursday (September 3, 2026) that management and unions had agreed to cut a further 50,000 jobs by the end of the decade, bringing total job losses to 100,000.

“It is essential to systematically align workforce levels with economic realities,” the 10-brand group said in a statement.

The firm had approved a plan which involved “the reduction of around 50,000 jobs”, on top of another 50,000 already agreed, it added.

Hit by U.S. tariffs, patchy demand for electric cars and above all fierce competition in and from China, Europe’s largest carmaker is in trouble.

The firm, which apart from its namesake also includes brands such as Audi and Porsche, had already agreed to cut about 50,000 jobs worldwide.

The total 100,000 cuts will be the largest restructuring ever carried out in the global automotive industry, amounting to about 15% of the carmaker’s staff worldwide.

Volkswagen further said that both management and unions agreed that the future of four German plants — in Hannover, Emden, Zwickau and Neckarsulm — could not be assured into the 2030s.

The plants closing would mark the first time Volkswagen had shuttered full-scale factories in its home country.

The adoption of the plans by Volkswagen’s supervisory board, made up of both labour and shareholder representatives, marks progress in delicate negotiations between the two sides.

“The supervisory board has unanimously approved the executive board’s future plan presented today,” CEO Oliver Blume said. “This is a strong signal for the future of the Volkswagen Group.”