Volkswagen Group announced late Thursday that it plans to eliminate 50,000 jobs and cut half of its vehicle offerings. The German automaker is struggling with headwinds from increasing Chinese competition in Europe and tariff costs on its shipments to the US market.
Volkswagen Group said it has also determined that its German factories have excess capacity of about 500,000 vehicles a year but did not identify specific job cuts or factory closings.
It sells Audi, Porsche and Lamborghini brands, in addition to Volkswagen and other offerings.
The automaker has been cutting staff and battling its powerful German unions for years. Its employment in Germany dropped from 275,000 in 2023 to 254,000 as of June 30, 2026, according to the company’s most recent financial report.
Volkwagen buyers, in addition to having fewer models to choose from, will also have far less ability to buy cars with the specific features they want. The company said it will cut “complexity” of the cars they build by 75%.
