German automaker Volkswagen’s supervisory board has approved a plan to lay off another 50,000 employees, as part of a sweeping turnaround program. The decision finalizes the company’s plan to cut a total of 100,000 jobs by 2030.
The Volkswagen Group owns several brands, including Audi, Porsche and Skoda. In March this year, the company had said it would cut 50,000 jobs by the end of the decade.
In a statement issued last Thursday, Volkswagen CEO Oliver Blume said the decision sends a “powerful message” about the company’s future, while also demonstrating responsibility toward its entire workforce. In July, Blume had said the company was considering further job cuts.
Volkswagen’s profits have declined as it has fallen behind in fierce competition with Chinese automakers. In response, the company has undertaken a major restructuring program.
Volkswagen said it will cut the number of car models it produces by 50% by 2035. It will also reduce the complexity of its models and variants by 75%.
The company said it will focus more on its most attractive and in-demand vehicles and increase production of each model, which will help lower production costs.
Volkswagen said a “fundamental realignment” of its global workforce is needed to remain competitive amid shifting market demand and technological change. As a result, about 50,000 positions, including management roles, will be cut across the group.
Meanwhile, the future of Volkswagen’s factories in Emden, Zwickau, Hanover and Neckarsulm, Germany, is also under review. The company says these factories have production capacity that exceeds current demand, and it is examining alternative uses for them.
This is the largest restructuring program in Volkswagen’s nearly 90-year history. As of 2025, the Volkswagen Group employed more than 660,000 people worldwide. In addition to Audi, Porsche and Skoda, the group’s brands include SEAT, Bentley and Lamborghini.
Christiane Benner, president of IG Metall, Europe’s largest industrial union, and deputy chair of Volkswagen’s supervisory board, said the automaker worked hard to find a good solution to a difficult situation.
Volkswagen’s profits have declined significantly in recent years amid falling car sales in China, once one of its biggest markets. Its sales have also declined in the United States, partly due to auto-import tariffs imposed by the administration of U.S. President Donald Trump.
Meanwhile, Chinese automakers have rapidly captured global market share by bringing new technology to market quickly and leveraging comparatively lower production costs. In recent years, Chinese companies like BYD have significantly increased vehicle sales in markets including the U.K., the European Union and Southeast Asia.