Volkswagen is set to eliminate another 50,000 jobs by 2030 after its board approved a fresh workforce reduction plan, taking the total number of positions the German carmaker expects to remove to 100,000 in one of the biggest restructuring efforts in its nearly 90-year history.
The latest cuts come on top of 50,000 job losses announced by the company in March as Volkswagen moves to lower costs and adjust its operations amid weaker sales, falling profits and growing pressure from Chinese carmakers.
The group, which owns brands including Audi, Porsche, Skoda and Volkswagen, is also reviewing the future of four plants in Germany as it seeks to match production with demand.
Volkswagen chief executive Oliver Blume described the latest decision as a "strong signal" for the future of the firm, saying the company was "taking responsibility for our entire workforce".
Blume had indicated in July that Volkswagen was preparing for another round of job reductions, with the company now confirming that about 50,000 additional positions will need to be removed across the group.
The company said the planned workforce reduction will include management positions as it works to protect its ability to compete in a fast-changing car market.
"A fundamental adjustment of the global workforce capability is necessary" to safeguard the competitiveness of the company, which faces shifting demand and technological change.
It added "a group-wide workforce adjustment of approximately 50,000 positions - including management roles - will be necessary."
Volkswagen is also considering what should happen to its plants in Emden, Zwickau, Hanover and Neckarsulm, where production capacity is higher than current demand.
"Alternative uses for these plants are being assessed," the company said.
Alongside the workforce cuts, Volkswagen plans to reduce the number of vehicle models it makes by 50% by 2035. It also intends to cut the complexity of its product range by 75% as part of efforts to simplify production and reduce costs.
The company said it would focus on its "most compelling vehicles" and produce greater volumes of each model. The strategy is expected to help the carmaker bring down production costs while concentrating resources on vehicles it believes have stronger demand.
Volkswagen's shares rose by about 7% in Frankfurt on Friday morning following news of the restructuring plan.
The carmaker has faced a sharp decline in profits in recent years, with falling sales in China playing a major role. China was previously one of Volkswagen's biggest markets, but local manufacturers have increased competition by expanding quickly and introducing new vehicle technologies.
Sales have also weakened in the United States, where the company has faced the effects of tariffs on imported vehicles introduced under President Donald Trump's administration.
Chinese manufacturers have increasingly challenged established carmakers by combining lower production costs with new technologies. Companies such as BYD have recorded strong sales growth in markets including the United Kingdom, the European Union and South East Asia.
As of 2025, Volkswagen employed more than 660,000 people worldwide across its various operations and brands, which also include 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" as it dealt with a "crisis situation".
The latest plan marks a major shift for a company that is seeking to reshape its global workforce while reducing the number of vehicles and production operations it maintains.