The Volkswagen Supervisory Board has approved a restructuring plan that will cut 50,000 jobs worldwide, according to a company announcement, the vote was unanimous, the company said on Thursday after an unexpectedly early meeting of the executive committee. The decision aims to create conditions for the group and its brands to be more efficient, competitive, and better positioned for the future.

Global Workforce Reduction and Financial Impact

Volkswagen stated that the 50,000 job cuts are necessary to achieve the goals of the transformation program, and the company cited increasing global competitive pressure, changing demand patterns, and technological change in the automotive industry as key reasons for the restructuring. The plan is expected to cost at least 6.6 billion euros, and in extreme cases, up to ten billion euros, according to a draft of the plan.

Rare Measures and Industry Context

Previously, the German newspaper “Bild” had cited the plan, which puts up to 60,000 positions,including management roles—on the chopping block, the company will start with around 47,000 job cuts worldwide, with plants in Europe also affected. The restructuring will continue and expand existing measures.

Long-Term Strategic Vision

Volkswagen has approved a broad plan to redefine its future over the next decade, known as the Future Plan 2030; the plan aims to restore the group’s profitability in an increasingly competitive market. It involves extensive investments in electrification and new technologies alongside major cost and capacity reductions; the roadmap includes streamlining the vehicle lineup and reassessing the European industrial network. Volkswagen acknowledged that its production capacity significantly exceeds current demand, with several German plants facing an uncertain future beyond the start of the next decade.