Volkswagen to Cut 50,000 Jobs and Halve Vehicle Lineup as Tariffs Threaten Up to $5.8 Billion
Updated
Updated · CNN · Sep 3
Volkswagen to Cut 50,000 Jobs and Halve Vehicle Lineup as Tariffs Threaten Up to $5.8 Billion
3 articles · Updated · CNN · Sep 3
Summary
50,000 jobs and half of Volkswagen Group’s vehicle offerings are set to go under a restructuring announced Thursday, with the company also planning a 75% cut in model complexity.
About 500,000 vehicles a year of excess capacity at German factories, rising Chinese competition in Europe and US import tariffs are driving the overhaul.
Tariffs alone could cost Volkswagen $4.7 billion to $5.8 billion this year; it imports roughly 240,000 cars from Europe at 15% tariffs and 287,000 from Mexico at 27.5%.
Germany employment had already fallen to 254,000 by June 30 from 275,000 in 2023, though Volkswagen did not identify specific plant closures or where the new job cuts will land.
The retrenchment deepens Volkswagen’s shift away from its earlier EV push after it halted US-market ID.4 production in April, while Chinese EV makers keep gaining ground in Europe.