Volkswagen to Cut 50,000 More Jobs as Chinese Competition, Tariffs Weigh

Tough times continue for Volkswagen (VW), which has approved plans to eliminate about 50,000 additional jobs as it restructures to reduce costs and address mounting competition, excess production capacity and trade pressures.

Volkswagen plans to cut about 50,000 additional jobs as part of a major restructuring aimed at reducing costs and excess production capacity. [Photo: Volkswagen Facebook]

The German automaker employs about 650,000 people worldwide.

The latest cuts are part of a broader restructuring plan that will bring total planned workforce reductions to about 100,000 by 2030 when earlier reductions are included.

Volkswagen's board approved the plan on Sept. 3.

The company also plans to end vehicle production at four German plants and reduce the number of vehicle models it offers, with the goal of simplifying production and lowering fixed costs.

The company faces pressure from several directions, including competition from Chinese automakers, US tariffs, high production costs and excess capacity in Europe.

Volkswagen estimates that European production capacity exceeds current demand by about 500,000 vehicles.

Volkswagen also plans to roughly halve its model portfolio as part of the restructuring.

The company has said the changes are intended to increase production volumes per model and improve efficiency.

Volkswagen Group owns a broad portfolio of automotive brands, including Audi, Bentley, Ducati, Lamborghini, Porsche, Škoda, SEAT and CUPRA. The company's challenges have been particularly visible in China, where sales have weakened amid intensifying competition from local electric-vehicle manufacturers.

Volkswagen reported a 30 percent decline in after-tax earnings in the first half of 2026. The restructuring is aimed at making Volkswagen more competitive while reducing the costs associated with maintaining excess production capacity.