Volkswagen To Cut 12% Of India Workforce In Major Cost Overhaul

Volkswagen is accelerating its India cost overhaul, with around 12% of its workforce potentially facing job cuts by 2027, as the German automaker prepares for its next investment cycle and a possible ownership shake-up involving Sajjan Jindal’s JSW Group.

The restructuring at Skoda Auto Volkswagen India began in 2025 but has now been brought forward, with a few hundred office and factory jobs expected to be affected in faster stages through 2027, Bloomberg reported, citing people familiar with the matter.

The move is aimed at creating a leaner cost base and is expected to save Volkswagen tens of millions of dollars in India before the company launches its next generation of vehicles, including a new electric model.

Piyush Arora, managing director and CEO of Skoda Auto Volkswagen India, declined to comment on the reported workforce reduction, calling the figures “speculative”. He said the company’s efforts to optimise its Indian operations were gaining momentum.

Despite the cuts, Volkswagen plans to increase investment in India, with plans to expand its local engineering team. The company considers India an important manufacturing, engineering and export hub.

The India restructuring is separate from Volkswagen CEO Oliver Blume’s global overhaul, which includes another 50,000 job cuts, a smaller vehicle portfolio by 2035 and a 16% reduction in planned capital spending between 2027 and 2031.

Meanwhile, Volkswagen is reportedly close to a deal that could give JSW Group a controlling stake in its Indian business and bring in fresh capital.

The restructuring comes as Volkswagen seeks to overcome its limited scale in India and build a stronger base ahead of its next phase of growth.