Volkswagen Group has announced a major restructuring plan that includes cutting 100,000 jobs across its global operations. The company’s supervisory board approved a strategic plan for 2030, aiming to reduce its industrial structure, which was originally designed for continuous growth, to better match current market conditions. These conditions suggest that annual vehicle production will be around 9 million, possibly even less in the near future, due to shifting consumer preferences and economic changes. The job cuts are being carried out in two phases. The first 50,000 job losses were negotiated by the end of 2024 and are nearly complete, mostly through early retirement programs. The second phase, which involves another 50,000 job reductions, has been approved by both unions and management and will be implemented gradually until the end of 2029. This phase will impact more than 170 subsidiaries worldwide, with half based in Germany. The reduction is expected to average 2.5% of the workforce per year, matching the typical retirement rate in a company where many employees work their entire careers. As of the end of 2025, Volkswagen employs 663,000 people, nearly double the number of Toyota’s workforce (390,000) and more than two and a half times that of Stellantis (258,000). The company had reached 500,000 employees in 2011 and peaked at 684,025 by the end of 2023. The only larger automaker in terms of workforce is the Chinese company BYD, which employs 870,000 people, though it recently cut 100,000 jobs with little media attention. Despite the restructuring, Volkswagen remains the leading automaker in Europe, holding more than a quarter of the market share. The company’s electric vehicle models, such as the Volkswagen ID.4, ID.3, ID.7, Skoda Elroq, and Cupra Born, are among the top-selling vehicles in Europe. Recent pre-orders for the new ID. Polo and Skoda Epiq reached 30,000 and 35,000 units respectively, showing strong consumer interest in Volkswagen’s electric lineup. While the company faces challenges in China and the United States, it continues to adapt and restructure to meet evolving market demands, aiming to ensure long-term sustainability.