Volkswagen to Slash 100,000 Jobs and Half Its Car Models in 'Most Profound' Transformation in Its History

Volkswagen Group plans to cut its workforce by around 100,000 jobs and halve its model range by 2035 in the biggest transformation in its history. The Supervisory Board approved the Future Plan 2030 on 3 September 2026, adding about 50,000 more job cuts to the roughly 50,000 already agreed. Volkswagen says the plan aims to reduce costs and simplify its vehicle lineup as it targets nine million annual sales and a 9% operating margin by 2030.

Volkswagen Group is much larger than the Volkswagen brand, with brands including Audi, Porsche, Škoda, SEAT, CUPRA, Lamborghini, and Bentley, as well as commercial vehicle and financial services businesses. By the end of 2025, the Group employed 662,942 people worldwide, including workers at its Chinese joint ventures. The plan will cut its model portfolio by about 50% by 2035 and reduce vehicle complexity by approximately 75%, with fewer variants to boost production volumes and lower costs.

In Britain, Volkswagen Group operates one car manufacturing site: Bentley's factory in Crewe, Cheshire. Bentley states that over 4,000 people work at its headquarters and manufacturing site. An organisational adjustment announced in March 2026 could affect around 275 positions. Bentley also reported higher costs due to changes at the parent company Volkswagen and a €42 million impact from US tariffs.

What the 100,000 Figure Actually Counts

Thursday's announcement calls for a further workforce reduction of about 50,000 positions. The other roughly 50,000 come from earlier programmes already agreed, so the 100,000 figure should not be described as 100,000 new cuts announced this week. Against a workforce of 662,942 at the end of 2025, the combined planned reduction is equivalent to about 15% of the Group's workforce.

Four German plants face particular uncertainty. Volkswagen Group says it cannot currently secure a competitive future production allocation for Emden, Zwickau, Hanover, and Neckarsulm for the period from 2031 to 2034. The Group is also assessing alternative uses for the plants. It plans to develop a concept for a sustainable and competitive production structure for its European factories by the end of June 2027.

Volkswagen's works council has also raised concerns about how the changes will affect employees. Daniela Cavallo, chairwoman of the Group and Central Works Council, said the transformation should proceed 'without placing the burden of that transformation solely on employees.' The Volkswagen announcement does not provide a detailed breakdown of how the planned workforce reduction will be distributed across its brands, businesses, and employee groups.

Half the Model Range, But Volkswagen Has Not Said Which Models Will Go

Volkswagen Group has not said which individual models it will remove. It says the remaining vehicles will focus on those with the strongest customer appeal, while fewer variants should allow each model to be produced in larger numbers and at lower cost. That means customers may eventually face fewer choices, although the Group has not yet provided a list of the models or versions that will disappear.

The financial targets show why Volkswagen is making the changes. The Group plans for annual sales of nine million vehicles and an operating margin of 9% by 2030, corresponding to an operating result of about €31 billion. It is also targeting €135 billion in capital expenditure and research and development investment during the 2027-2031 planning period.

Fewer models do not mean Volkswagen plans to sell fewer vehicles. It still targets nine million annual sales, but wants to reach that figure with a smaller model portfolio and far fewer variants. The strategy is intended to increase volumes per remaining model, reduce costs, and improve economies of scale.

Where It Lands in Britain

The situation at Crewe shows how decisions across the wider Group can affect British workers. In March, Bentley said about 275 positions could be affected by its restructuring, with GMB saying 150 jobs were due to be cut at the Crewe plant. GMB organiser Karen Lewis said at the time that 'the workforce is stunned' and that US tariffs had hit Bentley hard.

Bentley has not been specifically named in Volkswagen Group's 3 September announcement. Volkswagen has also not provided a brand-by-brand breakdown showing how the further 50,000-position workforce adjustment will be distributed. That means there is currently no clear public figure for how many of the new planned reductions, if any, will affect Bentley or other British operations.

For now, Volkswagen has confirmed its main sales, profitability and model-range targets, but many important details remain unresolved. The Group has yet to identify which models will go, how production will be allocated between plants, and how it will implement workforce reductions. The Group expects to develop its European production blueprint by the end of June 2027.