Volkswagen plans to cut 50,000 additional jobs as part of a restructuring effort to address falling profits, stiff competition from Chinese brands, and rising tariff costs.
Key facts
- •The new 50,000 job cuts include both management and general staff roles.
- •Volkswagen employed more than 660,000 people worldwide as of 2025.
- •The company plans to invest a three-figure billion sum to strengthen its brands.
- •Volkswagen shares rose between 5.8% and 7% in Frankfurt trading on Friday morning.
- •The restructuring is described as the most profound in the company's 89-year history.
Volkswagen has announced a plan to cut 50,000 jobs as part of a major restructuring program, bringing the company's total planned workforce reductions to 100,000 by 2030. The carmaker, which owns brands including Audi, Porsche, and Skoda, is facing declining profits due to intense competition from Chinese manufacturers and the impact of international tariffs. Shares in the company rose following the announcement on Friday.
By the numbers
Restructuring and Operational Changes
The company’s 'Future Plan 2030' includes 12 initiatives aimed at streamlining operations and reducing complexity. By 2035, Volkswagen intends to reduce its model portfolio by 50% and simplify its product offerings by 75%. Management also plans to implement a flatter leadership hierarchy to improve efficiency. Volkswagen is currently evaluating the future of four German production facilities in Emden, Zwickau, Hanover, and Neckarsulm, where production capacity currently exceeds demand. The company is assessing potential alternative uses for these sites.
Market Pressures and Financial Impact
Volkswagen has struggled with slumping profits, driven by a decline in sales in China and the United States. CEO Oliver Blume noted that tariff expenses for 2025 reached 2.9 billion euros ($3.4 billion). The company reported that tariffs on its European-made vehicles have increased from 2.5% to 15% in recent years, making its products more expensive and difficult to sell. Additionally, the firm faces aggressive competition from Chinese electric vehicle manufacturers such as BYD and Geely. Christianne Benner, president of the industrial union IG Metall, acknowledged that the company is navigating a 'crisis situation' and stated that the union has worked to find solutions for the workforce.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business, CNBC Europe.
