Volkswagen Supervisory Board approves 50,000 job cuts and puts four German plants under review

Supervisory board approval and workforce reductions

The Supervisory Board of Volkswagen Group voted unanimously on Thursday, 3 September 2026, to approve the Future Plan 2030 restructuring package prepared by the group management board. The measures are intended to restore competitiveness and lower structural costs in response to intensifying competition from Chinese automobile manufacturers. Under the approved plan, Volkswagen will eliminate 50,000 jobs across its international operations by 2030. That reduction is half of the 100,000 job cuts described in German press leaks in June. The carmaker also acknowledged an annual production surplus of 500,000 vehicles across its factories, an excess volume roughly equal to the total output of the Stellantis factory in Vigo or the Martorell plant.

Production sites under review and product simplification

Volkswagen announced that it cannot guarantee the continued operation of four German manufacturing facilities between 2031 and 2034. The plants under review are located in Emden, Zwickau, Hannover, and Audi's facility in Neckarsulm. Group leadership confirmed that it is evaluating alternative uses for all four sites. To reduce manufacturing expenses, Volkswagen will also reduce its vehicle portfolio by 50%, cutting the total offering from approximately 150 models to 75. In addition, the group plans to decrease equipment options and configuration variants by roughly 75%, directing resources toward high-volume models with greater economies of scale.

Speculation surrounding the Seat brand

The decision followed a report by the German economic weekly WirtschaftsWoche on a confidential 147-page document prepared for the supervisory board meeting. According to the publication, the draft indicated that the Seat brand would be phased out in an orderly, cost-optimized manner by late 2029, redirecting future investments toward Cupra. The report added that Volkswagen would maintain customer servicing and honour existing vehicle obligations despite retiring the nameplate. Seat management issued a public denial, stating that the supervisory board had taken no decision to discontinue the brand in the short or medium term. Cupra recorded sales of over 328,000 units in the previous year, achieving a 38% annual growth rate across European markets.

Union reactions and Martorell operations

The president of the Seat works council and member of the Volkswagen supervisory board, Matías Carnero, opposed the reported plans and demanded explanations from executive leadership. Carnero noted that Volkswagen had allocated 10 billion euros to electrify Seat and Cupra with support from public subsidies, arguing that public administrations must hold the group accountable.

We have to see if the information is true and if it is submitted to the consideration of the board of directors, but it is unacceptable, especially considering that there is no plan B to maintain the workload.

Carnero noted that current Seat models rely on internal combustion engines that face regulatory phase-outs, urging the group to assign an affordable electric model or the electric Cupra Formentor to Martorell. While Volkswagen plans a sub-20,000 euro electric city car known as the ID.1, no Seat variant is planned, leaving the Cupra Raval at 26,000 euros as the brand's cheapest electric option.