Volkswagen names new HR head amid widespread cuts
Volkswagen is cutting 50,000 jobs in its global workforce by the end of the decade after its Supervisory Board approved a new plan that will deliver a historic restructuring at the German automobile company amid external challenges.
The Supervisory Board, which represents the Volkswagen Group's labour force and shareholders, unanimously approved the Executive Board's Future Plan 2030, the carmaker announced on Thursday.
"This is a strong signal for the future of the Volkswagen Group," said CEO Oliver Blume in a statement. "We are taking responsibility for our entire workforce, for our partners, and for industrial jobs worldwide."
The plan includes a massive workforce adjustment of approximately 50,000 positions, including management roles, which will impact the Group's brands.
"Beyond existing programmes, a further fundamental adjustment of the global workforce capacity is necessary to achieve the objectives of the transformation programme and safeguard the competitiveness of the Volkswagen Group," the company said in a media release.
"Given intensifying global competition, shifting demand, and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential."
The plan also aims to deliver leaner leadership structures, clearer accountability, and shorter lines of decision-making at the German carmaker.
"A unified performance and bonus system for executives will drive accountability for individual results and collective performance," the media release read.
Volkswagen dubbed the Future Plan 2030 as the "most extensive transformation programme" in its history, with 12 initiatives designed to make it resilient and competitive amid tariffs and growing rivals overseas.
Among its goals include an annual sales figure of nine million vehicles, with an operating margin of nine per cent by 2030 as its primary financial target.
The plan also includes a streamlining of its model portfolio by around 50% and a reduction of offering complexity by around 75%.
Massive cuts amid new HR chief
The newly announced cuts add on top of the 50,000 workforce reduction that's already underway at Volkswagen, bringing the company's workforce reductions to 100,000.
It also comes after Blume drew boos and whistles from protesting employees when he told them to "pull together" amid initial reports of the job cuts.
"Our plan for the future is the largest transformation programme in our company's history. To make this happen, everyone needs to pull together now," the CEO said late last month, as quoted by The Guardian.
The job cuts and the growing pushback from the workforce will be among the top challenges facing Erika Rasch, who was named Board Member for Human Resources at Volkswagen AG on Thursday.
Rasch, who was Head of Corporate People and Culture at Robert Bosch Group, will step into the position on 1 October.
Hans Dieter Pötsch, Chairman of the Supervisory Board of Volkswagen AG, said Rasch has "broad experience and outstanding expertise in HR."
"At the same time, she brings new perspectives and ideas that will be particularly important for the Volkswagen Group during its current transformation phase," Pötsch added.
"These characteristics lend high credibility to her future role at Volkswagen AG. The Supervisory Board wishes Erika Rasch every success in her new function."
Rasch replaces Thomas Schäfer, who held the position on an interim basis since July 2025.
