“No Crisis”: Volkswagen Launches Giant Social Plan
- Published on 23/06/2026 9:10
- Modified on 23/06/2026 9:11
Volkswagen announces a major cost-cutting plan with 50,000 job cuts to finance its transition to electric vehicles.
While Volkswagen has long touted its financial strength, the German group now openly acknowledges the need to reduce its spending. Faced with sharply declining profitability, the leading European automaker has unveiled a transformation strategy based on a vast cost-saving program and a profound reorganization of its activities.
The assessment is clear. Despite global deliveries remaining stable at around 9 million vehicles, the group’s profits have significantly declined. Operating profit has fallen from 19.1 billion euros to 8.9 billion euros, prompting management to reassess its priorities. The objective set by CEO Oliver Blume is clear: to achieve an operating margin between 8 and 10% by 2030.
Volkswagen opens its eyes
To achieve this, Volkswagen plans to save more than 6 billion euros in annual costs by the end of the decade. The main lever will be staff cuts. In total, nearly 50,000 positions are expected to disappear within the group, which includes Volkswagen, Audi, Porsche, and the software division Cariad. More than 28,000 departures have already been agreed upon within Volkswagen AG.
The manufacturer also intends to simplify its industrial organization. Production capacities will be adjusted to the actual needs of different markets, and the number of platforms, electronic systems, and model variants will be reduced to limit complexity and development costs.
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These measures are expected to finance an ambitious investment plan in electric vehicles. Volkswagen currently enjoys a favorable momentum in this segment, with sales of 100% electric models rising by 32% worldwide and by 66% in Europe. The group now claims 27% of the European electric vehicle market.
By 2030, Volkswagen intends to strengthen this position with around twenty new electric models, including more affordable city cars like the future ID. Polo, ID. Cross, Cupra Raval, and Škoda Epiq. A necessary offensive to stay competitive against Chinese competitors and new players in the global market.
READ ALSO: Here’s how Skoda will double its electric offering by 2026
This page is translated from the original post "« Pas de crise » : Volkswagen lance pourtant un plan social géant" in French.
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