Volkswagen Group will drastically reduce costs and restructure its brands by 2030, including layoffs and the closure of some plants, due to the decline in the automotive market.

The Volkswagen Group is proposing a major restructuring of its volume brands, such as VW, Skoda, Cupra, and SEAT, to reduce costs by 1 billion euros by 2030. CEO Thomas Schafer has set a deadline for the reorganization, considering the pressures on profitability and the decline of the European car market. The group will lay off 35,000 employees, with 25,000 already completed and another 10,000 in preparation, through voluntary departures and early retirements. It is also expected to close or reduce operations at ten production units in the next five years. Cost reductions have already begun, with a nearly 30% decrease in three factories.