Tech Job Cuts: Volkswagen To Eliminate 100,000 Employees By 2030, Nearly 15% Of Its Workforce

Volkswagen's management and labour representatives have signed off on a fresh round of layoffs that will take the automaker's total workforce reduction to 100,000 positions by the end of the decade, marking the largest restructuring drive in the global car industry's history.

50,000 more jobs on the chopping block

The German carmaker confirmed that its supervisory board had cleared a plan to eliminate roughly 50,000 additional roles, stacking on top of 50,000 cuts that had already been settled earlier. Explaining the move, the 10-brand conglomerate, whose stable includes Audi and Porsche alongside its flagship marque, said it needed to bring staffing levels in line with prevailing economic conditions.

Europe's biggest automaker has been squeezed on multiple fronts - American tariffs, inconsistent appetite for its electric vehicle lineup, and intensifying rivalry from Chinese manufacturers both at home and in export markets.

Once finalised, the 100,000 job losses will represent close to 15 percent of Volkswagen's global headcount, surpassing even the 50,000 positions General Motors shed following its 2009 bankruptcy filing - making this the auto sector's most sweeping shake-up on record.

Four German plants left in limbo

Labour and management negotiators jointly acknowledged that the long-term viability of four domestic factories - located in Hannover, Emden, Zwickau, and Neckarsulm - remains uncertain, though the company said it is exploring alternative purposes for the sites rather than committing to outright closures.

Should any of these facilities actually shut their doors, it would be the first time Volkswagen has closed a full production plant on German soil.

Martin Lehmann, who has been employed at the Zwickau site since 2012, told AFP that shuttering the plant would devastate the surrounding region, warning that the factory and the local supply chain built around it function as the economic backbone of the area.

Board approves plan after bitter public spat

The go-ahead from Volkswagen's supervisory board - split evenly between labour and shareholder representatives - signals a breakthrough after weeks of strained negotiations between the two camps.

CEO Oliver Blume called the unanimous approval a strong signal for the group's future, describing the future plan as having received full backing from the board.

The run-up to the agreement was anything but smooth. Unions accused executives of withholding information from staff after reports of the 100,000-job figure leaked to the press before workers were formally briefed. Tensions escalated further after WirtschaftsWoche reported on Tuesday that management had explored routes to bypass the supervisory board altogether - a suggestion the influential IG Metall union dismissed in blunt terms, branding it nonsense.