Volkswagen Expands Restructuring: Up to 50,000 Jobs at Risk, Model Lineup to Halve by 2035

Volkswagen is deepening its cost-cutting and restructuring program, potentially affecting up to 50,000 jobs as the automaker seeks to streamline operations and boost profitability. The initiative is part of a broader strategy to reposition the company for a more competitive future in the rapidly evolving automotive landscape.

As part of the overhaul, Volkswagen plans to significantly trim its model portfolio, aiming to reduce the number of vehicle offerings by roughly 50% by 2035. This move is designed to focus resources on fewer, higher-performing models that can better meet market demand and generate stronger returns.

In North America, the strategy will involve a notable shift toward higher-margin vehicles, moving away from volume-oriented models that have faced margin pressures. This regional pivot is intended to align the product lineup with consumer preferences for more profitable segments, such as SUVs and premium offerings.

The restructuring underlines the mounting pressure on traditional automakers to adapt to the industry’s transition toward electric mobility and shifting consumer expectations. Volkswagen’s comprehensive plan signals a determined effort to cut complexity, reduce costs, and sharpen its competitive edge in key markets worldwide.