Volkswagen Board Approves Plan to Cut Workforce, Model Portfolio

By Katherine Hamilton

Volkswagen's supervisory board approved a plan to significantly reduce its workforce and model portfolio in an effort to navigate a bumpy auto industry.

By 2035, the auto maker aims to cut its model portfolio by about half and lower its offering complexity by about 75%. Volkswagen also plans to slim down leadership teams and reduce its workforce by 50,000 positions, including management roles.

"Given intensifying global competition, shifting demand and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential," Volkswagen said.

The plan comes as Volkswagen's European capacity currently exceeds demand by more than 500,000 units, the company said.

The company's supervisory board unanimously approved the plan, which is called Future Plan 2030. Following the approval, the executive board can start implementing the plan, the company said.

The plan's approval comes as Chinese automakers are eating into German car companies' market share across the globe. Higher U.S. tariffs and a choppy transition to electric vehicles have also posed hurdles.

With a smaller portfolio, Volkswagen aims to put out higher volumes per model with lower costs and higher-end technology. It plans to launch new production structures based on the plan for its European plants by the end of June 2027.

In North America, Volkswagen will focus on its most profitable segments and, in China, the company is adapting to what it called revised expectations for overall growth.

Volkswagen said it expects to sell 9 million vehicles a year, with a targeted operating margin of 9% by 2030.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

September 03, 2026 16:15 ET (20:15 GMT)