The German automotive giant Volkswagen announced that management and unions have reached an agreement for cut another 50.000 jobs by the end of the decade, bringing total job losses to 100.000"It is essential to systematically align workforce levels with economic realities," the group, which comprises 10 brands, said in a statement. The company has approved a plan that calls for "the reduction of approximately 50.000 jobs," in addition to the 50.000 already agreed upon.
Volkswagen's tough restructuring plan: nearing farewell to Seat
The supervisory board has in fact approved the tough recovery plan presented by the group's board of directors. Implementation of the plan, they say, is necessary to maintain the company's competitiveness. But this isn't the only new development, as the magazine reports. Wirtschaftswoche, the board of directors of the Wolfsburg-based automotive group – in the midst of the largest restructuring in its history – intends to withdraw the long-established Spanish brand Seat from the market (founded in the 50s by the Spanish state and Fiat, then passed to VW in the 80s) which is scheduled to close by 2029 at the latest.
Excluding Seat from the strategic vision developed for 2030, VW intends to save costs, simplify processes and thus focus more on its sister brand Cupra, which has now long since surpassed Seat in terms of sales. According to data from BILD, in the first half of 2026, 170.100 Cupras were delivered, compared to 129.600 for Seat.
A Volkswagen spokesperson, contacted by the German newspaper, held back, stating that internal documents are not commented on: "Internal documents are discussed and approved by the relevant bodies. We do not preempt this process."
Volkswagen: How Much Do China and US Tariffs Affect?
The possible closure of Seat is however only one part of the major reorganization in the pipeline at VW. On Friday the supervisory board will also discuss the future of four VW plants in Germany, as well as a further possible reduction of tens of thousands of jobs worldwide. The CEO of VW, Oliver flower, intends to make Europe's largest car manufacturer more competitive through a impactful savings program. The pressure comes mainly from Chinese producers, by the problems on the Chinese market and by US tariffs as well as by the unfavorable geopolitical and economic climate. Particular attention is paid to the VW plants in Zwickau, Emden, Hanover and the Audi plant in Neckarsulm, at risk of closure by 2034. Workers' representatives, led by works council president Daniela Cavallo, and the state of Lower Saxony have been protesting for some time, repeating their opposition to possible cuts.
