Volkswagen to cut 50,000 more jobs in historic restructuring

The board of German automotive giant Volkswagen has approved plans to cut another 50,000 jobs as part of the biggest restructuring in the company’s nearly nine-decade history, BBC reports.

The latest measures will bring the total number of positions Volkswagen plans to eliminate by 2030 to around 100,000, following the company’s announcement in March that it would cut 50,000 jobs.

The Volkswagen Group, which includes brands such as Audi, Porsche, Skoda and Volkswagen, is also reviewing the future of four German production facilities in Emden, Zwickau, Hanover and Neckarsulm.

The decision sends a “strong signal” about the company’s future, Volkswagen CEO Oliver Blume said in a statement, adding that the company was “taking responsibility for our entire workforce.”

Blume had already indicated in July that Volkswagen was considering further job cuts.

Volkswagen shares rose by around 7% in Frankfurt on September 4 morning following the announcement.

The automaker, best known for models such as the Golf, has faced declining profits amid weaker sales and intensifying competition, particularly from Chinese manufacturers.

As part of its restructuring, Volkswagen said it plans to halve the number of models it produces by 2035 and reduce the complexity of its product portfolio by 75%.

The company said it would focus on its “most compelling vehicles” and increase production volumes for individual models, measures it expects will help reduce costs.

A “fundamental adjustment of the global workforce capability is necessary” to safeguard Volkswagen’s competitiveness as the company responds to changing consumer demand and rapid technological developments.

The company added that “a group-wide workforce adjustment of approximately 50,000 positions - including management roles - will be necessary.”

Volkswagen is also examining alternative options for its plants in Emden, Zwickau, Hanover and Neckarsulm, where production capacity currently exceeds demand.

“Alternative uses for these plants are being assessed,” the company said.

Volkswagen employed more than 660,000 people worldwide as of 2025. Its portfolio also includes SEAT, Bentley and Lamborghini.

Christianne Benner, president of Europe’s largest industrial union IG Metall and deputy chair of Volkswagen’s Supervisory Board, said the company had “fought hard for good solutions” to address what she described as a “crisis situation.”

Volkswagen’s profits have fallen sharply in recent years, particularly as sales have weakened in China, once one of its most important markets.

Sales have also declined in the United States, partly due to the impact of tariffs on imported vehicles introduced by the administration of US President Donald Trump.

Meanwhile, Chinese automakers have expanded rapidly into international markets, capitalizing on new technologies and lower production costs.

Companies such as BYD have recorded significant sales growth in recent years across markets including the UK, European Union and Southeast Asia, intensifying pressure on established European carmakers.

By Vafa Guliyeva