Volkswagen to Cut 19,000 Jobs in Germany This Year, Over 28,000 by 2030

Volkswagen Group plans to cut 19,000 jobs in Germany by the end of 2024 and has set a binding target to reduce its German workforce by more than 28,000 positions cumulatively by 2030. CEO Oliver Blume stated that production costs at Volkswagen’s German plants will be reduced by over 20% compared to previous levels by 2025. The company will present this job-cutting and cost-reduction plan to investors at its annual general meeting on June 18. In April, Volkswagen reported global deliveries of 2.05 million vehicles for the first quarter, a 4% year-on-year decline. The company attributed the performance pressure primarily to falling sales in China, the impact of U.S. tariff policies, and the expiration of electric vehicle subsidies. Volkswagen is currently grappling with multiple challenges, including intensifying competition from Chinese automakers like BYD, rising trade barriers in the U.S. market, and high domestic energy and labor costs in Germany. Blume previously noted that Germany’s high production costs and complex regulatory environment necessitate efficiency improvements to drive restructuring.