On a Thursday in mid-2025, Volkswagen's supervisory board signed off on a decision that will reshape one of the world's most recognisable industrial empires: another 50,000 jobs eliminated, bringing the decade's total reduction to 100,000 roles by 2030. The move represents the deepest restructuring in the German automaker's nearly ninety-year history, affecting a group that stretches from the mass-market Golf to the hand-stitched leather interiors of Bentley and Lamborghini. The scale of the cuts reflects the severity of VW's financial position. Profits have declined sharply over recent years, driven primarily by collapsing sales in China — once the company's single largest market — and by the impact of US import tariffs introduced under President Donald Trump's administration.

Meanwhile, Chinese manufacturers such as BYD have expanded aggressively across the United Kingdom, the European Union, and South-East Asia, combining newer battery technologies with production costs that European rivals have struggled to match. As of 2025, VW employed more than 660,000 people worldwide across brands including Audi, Porsche, Skoda, Seat, and CUPRA. The restructuring goes beyond headcount. By 2035, VW plans to reduce the number of models it produces by 50% and cut the complexity of its overall offering by 75%, concentrating resources on fewer, higher-volume vehicles to lower per-unit costs.

Four German plants — in Emden, Zwickau, Hanover, and Neckarsulm — remain under review, with the company assessing alternative uses for facilities where production capacity now exceeds demand.