Volkswagen Plans to Cut Hundreds of Management Roles and 50,000 Indirect Jobs

Volkswagen is cutting hundreds of management positions as part of its plan to streamline white-collar staff. The company reportedly approached external executive search firms seeking new roles for 400 to 500 managers but was turned down, with recruiters citing a lack of available senior-level positions. Magnus Tessner, automotive industry partner at executive search firm IFP, noted that automakers like Mercedes-Benz and Volkswagen are carrying out large-scale layoffs, and although many departing managers receive generous severance packages, they still struggle to find new jobs. Volkswagen has already begun reducing its workforce at German plants and plans to eliminate an additional 50,000 positions in "indirect" areas such as administration, product development, and sales. Its sports car brand Porsche also announced plans to cut 5,000 jobs, primarily in back-office functions. Volkswagen’s initial target is to reduce its German workforce by 50,000 employees by 2030, covering manufacturing and support roles across the Volkswagen brand, Audi, and its software division Cariad. Internal analyses show that Volkswagen’s management costs are 30% higher than those of other automakers, a disparity CFO Arno Antlitz attributes largely to the group’s structural complexity across all levels. Additionally, Volkswagen has announced plans to significantly trim its product lineup, potentially discontinuing nearly half of its current models and reducing optional equipment configurations by up to 75%.