The board of Volkswagen has agreed to cut a total of 100,000 jobs by 2030 as part of a sweeping restructuring programme aimed at countering the impact of tariffs and intensifying competition from Chinese rivals.

The German group, which includes Audi, Porsche, Skoda and the VW brand, said the overhaul would be 'the most extensive transformation programme' in its 89-year history.

The planned cuts include the 50,000 jobs already agreed, taking the total reduction to 100,000 positions by the end of the decade.

The firm, which employs around 660,000 people, did not provide further details on the timing of the cuts or how they would be distributed across its brands and regions.

Volkswagen also outlined plans to halve its vehicle line-up by 2030, prioritising its 'most compelling vehicles' and increasing production volumes of each model to help lower costs.

The move could trigger up to four factory closures in Germany and may result in 76-year-old brand Seat being axed entirely.

'A fundamental adjustment of the global workforce capability is necessary' to preserve the company's competitiveness, Volkswagen said.

Volkswagen has been hit hard by falling sales in China, once one of its biggest markets, amid rising competition from domestic brands such as BYD.

Meanwhile, US sales have declined partly because of the impact of President Donald Trump's tariffs on imported vehicles.

'This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide,' Volkswagen Group chief executive Oliver Blume said.

The Wolfsburg-headquartered company is considering the future of four German plants, where it said production capacity exceeds demand.

Blume said no new models would be allocated to the Emden, Zwickau, Hanover and Neckarsulm factories unless costs can be brought down.

The overhaul will also accelerate platform sharing, with models across the Volkswagen Group set to share more mechanical and electrical architecture, software and components.

The 'Future Plan' averts a clash with unions and Lower Saxony, Volkswagen's second-largest shareholder, following negotiations that began after Blume first unveiled the proposals in June.

The plan sparked protests outside the carmaker's factories in Germany in early July.

On Thursday, Daniela Cavallo, the chief employee representative, said it was 'a necessity for our company to move successfully into the next decade without the associated undertakings coming only on the side of the employees'.

Seat, the Spanish car brand owned by Volkswagen since 1990, could become the biggest casualty of the Future Plan, according to reports.

Internal documents seen by automotive title Autocar suggest Seat will be phased out by the end of 2029 at the latest.

Cupra, Seat's sporty spin-off brand, would be retained and become Volkswagen Group's flagship Spanish marque.

Cupra, which in recent years has focused on sharper-handling electrified vehicles, has become an increasingly popular choice among younger customers despite its higher price point.

This has seen Cupra overtake its parent brand in sales, with 170,100 vehicles delivered in the first half of 2026 compared with 129,600 for Seat.

If Seat is culled, it would mark the end of a manufacturer with a strong presence in the UK. Its cars have been sold here since 1985.

In response to the announcement, Volkswagen shares rose 7 per cent in early trading on Friday.

'We think the decision is an important step towards making VW more cost-competitive with Chinese original equipment manufacturers that are aggressively expanding in Europe,' he said.

Deutsche Bank analysts said that while the agreement does not solve all of Volkswagen's challenges, it 'removes one of the biggest investor concerns: whether the company is still capable of making the difficult decisions required to address them'.