The company said the workforce reduction would include management positions and is necessary to align its workforce capacity with economic realities.
“Given intensifying global competition, shifting demand and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential,” Volkswagen said.
“According to the analysis underlying the Future Plan 2030, a Group-wide workforce adjustment of approximately 50,000 positions – including management roles – will be necessary,” it added.
As part of the restructuring, Volkswagen plans to streamline its model portfolio by around 50% by 2035 and reduce product complexity by approximately 75%.
“The prioritized models aim to excel in design and technology – and benefit from the focus on fewer variants: Higher volumes per model, lower costs, stronger economies of scale,” the company said.
Volkswagen said it is also aligning its vehicle platforms, electronic architectures, driver assistance systems and software with the requirements of markets across both the Western and Eastern hemispheres.
The automaker further said it plans to develop a concept for a sustainable and competitive production structure for its European plants by the end of June 2027.
The Supervisory Board, in its resolution on the turnaround plan, acknowledged that Volkswagen Group's European production capacity currently exceeds demand by more than 500,000 vehicles.
The company said a competitive future production allocation for its Emden, Zwickau, Hanover and Neckarsulm plants cannot currently be secured on a staggered basis for the period from 2031 to 2034.
Volkswagen's China strategy
On its operations in China, Volkswagen said it is adapting its business strategy to revised expectations for overall growth in the Chinese automotive market.
The company also plans to expand its export business from China towards markets in the Global South.
The restructuring is aimed at simplifying Volkswagen's product and production structure while reducing costs and strengthening the group's competitiveness in an increasingly challenging global automotive market.