Volkswagen’s supervisory board has reached a surprise unanimous deal to back chief executive Oliver Blume’s sweeping overhaul that will see the German carmaker slash up to 50,000 jobs and could lead to plant closures. The company told investors on Thursday evening that the restructuring would be “the most extensive transformation programme” in its history.

The announcement comes after Blume earlier this year outlined a plan that could result in the reduction of up to 100,000 jobs and the closure of as many as four plants in Germany. The 50,000 job cuts envisaged under Thursday’s plan would be in addition to 50,000 reductions since 2024, according to the company.

VW, which employs 652,000 people, has been hit hard by rising competition from Chinese carmakers, US tariffs and lacklustre sales in its European home market. The group’s vehicle sales fell 8.4 per cent in the first six months of 2026, while operating profit declined by 11.6 per cent. The supervisory board approved the plan late on Thursday, bringing forward a meeting originally scheduled for Friday following marathon talks to win over unions and Lower Saxony.

The carmaker said its European capacity exceeds demand by more than 500,000 units. A group-wide workforce adjustment of approximately 50,000 positions, including management roles, will be necessary. Germany’s union IG Metall said the spin-off plan was “off the table”, but a person close to VW said it was still being discussed.