Volkswagen job cuts: Automaker to eliminate 50,000 more jobs and halve vehicle lineup by 2035

Volkswagen is preparing for one of its biggest restructuring drives, with plans to eliminate another 50,000 jobs globally and sharply reduce the number of vehicles and variants it offers.

The company's supervisory board approved the Future Plan 2030 on Thursday as Volkswagen faces rising competition from Chinese automakers, weaker demand in China and the impact of US tariffs.

Job cuts could reach 1 lakh

The latest reduction comes on top of around 50,000 positions already covered by existing restructuring programmes. Taken together, planned job cuts across the Volkswagen Group could reach about 1,00,000 by the end of the decade.

The company has not yet said where the latest positions will be removed or when the cuts will happen. The figure includes management roles and comes alongside reductions already planned at Volkswagen, Audi and Porsche.

Volkswagen's workforce in Germany has already fallen from 275,000 in 2023 to 254,000 as of June 30, 2026.

Half the models, fewer variants

As part of the restructuring, Volkswagen plans to reduce its model range by half and cut the number of variants and configurations by roughly 75% by 2035.

The strategy is aimed at simplifying production, increasing volumes for individual models and lowering costs.

“The prioritised models aim to excel in design and technology and benefit from the focus on fewer variants," according to a statement from Volkwagen Group on Thursday, cited by News18.

The company said the move would result in “higher volumes per model, lower costs, stronger economies of scale".

Four German plants face uncertainty

Volkswagen said it has not yet identified competitive vehicle-production allocations for its facilities in Emden, Zwickau, Hanover and Neckarsulm for the 2031-2034 period.

The company has not announced immediate closures and will instead examine alternative uses for the four sites. A new production strategy for its European factories is expected by June 2027.

Volkswagen estimates that its European manufacturing network currently has more than 500,000 vehicles of excess annual capacity compared with demand.

China, US tariffs add pressure

Volkswagen's vehicle deliveries in China fell 25.9% in the first half of 2026 as local electric-vehicle and traditional automakers increased competitive pressure.

The company has also estimated that US tariffs could cut annual operating profit by around €5 billion. In the first half of 2026, operating profit fell 11.6% to €5.9 billion, while net profit dropped 31% to €3.1 billion.

“Given international competition, the challenges facing Volkswagen and the German automotive industry are enormous," Lower Saxony Minister-President Olaf Lies said.

“We need a competitive framework and a trade policy that strengthens our industrial base in an increasingly fierce global competition," Lies added.