Volkswagen accelerates workforce reduction plan as 19,000 jobs set to go in 2026

Volkswagen is pushing ahead with sweeping workforce reductions in Germany, with plans to cut 19,000 jobs by the end of 2026 as part of a broader effort to lower costs and improve efficiency, Chief Executive Oliver Blume is set to tell investors.

The announcement highlights the scale of change taking place at Volkswagen AG, one of the world’s largest automakers, as it seeks to strengthen its position amid growing industry pressures.

According to a transcript of Blume’s speech prepared for the company’s annual general meeting on June 18, the automaker remains committed to previously announced restructuring measures.

Volkswagen Workforce Reduction Targets

Blume is expected to tell shareholders that the company plans to reduce its workforce by 19,000 employees by year-end.

The CEO will also reaffirm a longer-term goal that calls for more than 28,000 job cuts by 2030. The target has already been agreed as a binding commitment.

The move represents one of the most significant workforce reduction programmes currently underway in the European automotive sector.

Cost Reduction Strategy Gains Momentum

Alongside job cuts, Volkswagen says it has made significant progress in lowering operating expenses.

“We reduced factory costs at Volkswagen’s German sites by more than 20% by 2025,” Blume said in the prepared remarks.

The reduction in factory costs forms a central part of the company’s wider cost reduction strategy, aimed at improving competitiveness and profitability.

Industry observers have closely watched Volkswagen’s restructuring efforts as automakers worldwide face pressure to manage expenses while adapting to changing market conditions.

As shareholders gather for the annual meeting, attention will likely focus on how quickly the company can achieve its targets and whether the savings generated will strengthen Volkswagen’s future position.

Read also: Volkswagen considers iron dome shift to save 2,300 German jobs