FRANKFURT, GERMANY — Volkswagen Group is launching one of the biggest restructuring efforts in its history, with plans to eliminate approximately 50,000 additional jobs worldwide and reduce its vehicle lineup by about half.
The German automaker’s supervisory board approved the sweeping transformation plan Thursday as Volkswagen faces mounting pressure from lower-cost Chinese competitors, excess production capacity in Europe and the financial impact of U.S. tariffs.
The latest cuts come on top of an earlier workforce-reduction program of roughly 50,000 positions. Combined, the restructuring could eventually bring Volkswagen’s total planned workforce reduction to around 100,000 jobs.
Volkswagen also plans to significantly simplify its product portfolio. The company expects to reduce the number of vehicle models by roughly 50% by 2035, focusing resources on higher-volume models while cutting complexity and costs.
The company says its European operations currently have excess production capacity of approximately 500,000 vehicles per year. Four German facilities — Emden, Zwickau, Hanover and Neckarsulm — face major uncertainty as Volkswagen evaluates their future production roles.
The restructuring comes as Volkswagen struggles in China, where domestic automakers have rapidly expanded their presence, particularly in electric vehicles. The company has also cited U.S. trade tariffs as another major challenge affecting its global business.
Volkswagen CEO Oliver Blume said the transformation is intended to make the company’s brands more competitive and strengthen its position for the future.
The sweeping plan represents a major turning point for Volkswagen as the nearly 90-year-old automaker attempts to reduce costs, simplify operations and compete in a rapidly changing global automotive market.
