Wolfsburg, Germany — April 28, 2026 Volkswagen strengthens savings plan under 2030 strategy Volkswagen Group CEO Oliver Blume announced a reinforced cost-saving strategy and a new "Target Image Volkswagen Group 2030" plan, citing insufficient profitability to sustainably finance the company's future.
Restructuring and Job Cuts
Volkswagen is accelerating its cost-cutting efforts, with plans to reduce its global workforce by 50,000 jobs across its core brand and subsidiaries Audi and Porsche in Germany. Of these, 35,000 positions will be eliminated at the core Volkswagen brand. The reductions will primarily occur through early retirement and severance packages, as operational dismissals are excluded until 2030 under an agreement with Germany’s IG Metall union.
The move comes as part of a broader effort to streamline operations and improve financial performance. «Allerdings verdienen wir heute nicht genügend Geld mit unseren Fahrzeugen, um unsere Zukunft nachhaltig zu finanzieren» ("However, we are not earning enough money with our vehicles today to sustainably finance our future"), Blume stated in internal communications.
Financial Challenges and Strategic Shifts
Volkswagen aims to reduce its annual vehicle production from 9 million to 8 million units, aligning with its 2025 sales figures, which saw the company deliver 8.98 million vehicles worldwide. The adjustment reflects a strategic shift toward profitability over volume.