Major European automakers are cutting nearly 150,000 jobs by 2035, driven by falling sales in China, rising trade barriers, and the rapid transition to electric vehicles. Germany and its flagship brands are at the center of this upheaval.
Volkswagen, Porsche, Audi and BMW are preparing to eliminate tens of thousands of jobs across Europe, marking the most significant restructuring in the region’s automotive sector since the 2008 financial crisis. The scale of these cuts, confirmed by company plans and union negotiations, reflects a perfect storm: Chinese manufacturers are gaining ground, electric vehicle adoption is upending traditional production, and global trade tensions are squeezing profits.
According to figures cited by elespanol motor, European carmakers have announced the departure of 146,950 workers by 2035. Unlike the Detroit bankruptcies of 2008, this wave is centered in Europe—especially Germany, the continent’s industrial powerhouse. The four major German brands account for 85% of the announced cuts, a direct response to plummeting sales in China and new tariffs in the US, both critical export markets.
Volkswagen, the world’s second-largest automaker, has already agreed to cut up to 50,000 jobs in Germany by 2030, with CEO Oliver Blume signaling that global reductions could reach 100,000 by decade’s end. The plan, still under negotiation with unions, includes the closure of four plants: three Volkswagen sites (Hannover, Zwickau, Emden) and Audi’s Neckarsulm facility.
Porsche, the luxury arm of Volkswagen, is also scaling back. After an initial round of 3,500 job cuts for 2030, CEO Michael Loiters announced another 500 layoffs this year. Most recently, Porsche and unions agreed to a further 5,000 job reductions by 2035, alongside €2.1 billion in new investment for its Zuffenhausen and Weissach sites. In total, Porsche will shed 9,400 jobs—over 20% of its workforce.
Audi is set to cut 7,500 jobs by 2029, about 9% of its staff, as it struggles with weak Chinese sales and US tariffs. The brand’s profitability remains in the low single digits, though it saw a slight improvement to 3.8% in the first half of the year.
BMW has joined the trend, announcing up to 8,000 global job cuts by 2027—5% of its workforce—after a sharp drop in profits and revenues. The company’s margins have also slipped, reflecting the mounting pressure on traditional automakers.
The crisis is not limited to German brands. Nissan plans to lay off 20,000 employees worldwide by March 2028, closing seven factories and cutting 15% of its workforce. In Europe, 900 jobs will go, including 195 in Catalonia, Spain, affecting key technical and logistics centers.
Even luxury marque Aston Martin is not immune. Facing six consecutive years of losses, the British company will cut 20% of its staff—up to 600 jobs—while scaling back investment in electric platforms. The move aims to save £40 million in operating and capital expenses, with most savings realized by 2026.
Europe’s overcapacity problem is worsening as car sales remain well below pre-pandemic levels. In the first half of the year, EU passenger car registrations reached 5.89 million—28% less than in 2019, according to ACEA. While some markets, like Spain, have narrowed the gap thanks to the influx of Chinese brands, the overall recovery remains elusive. Notably, Spain’s market share for Chinese automakers hit 15.7% in the first half, with 101,716 new registrations.
French group Renault and Stellantis have also announced targeted cuts: 800 engineering jobs in France and 650 at Opel’s Rüsselsheim development center in Germany. The scale of these reductions echoes the American auto industry’s contraction in 2008, but with a distinctly European focus this time.
As the sector transforms, the competitive threat from China is impossible to ignore. Chinese manufacturers now control the battery supply chain and offer vehicles at prices and margins European firms struggle to match. This shift is already reshaping the market, as seen in the growing presence of Chinese electric models and the strategic responses from legacy brands. For a closer look at how Chinese innovation is challenging German tradition in the electric vehicle market, see this comparison of new premium EV contenders: Zeekr 7GT and BMW iX3.
Looking ahead, the European automotive industry faces a period of painful adjustment. The combination of global competition, technological disruption, and shifting consumer demand is forcing even the strongest players to rethink their operations and workforce. While some markets may benefit from new entrants, the overall trend points to a leaner, more competitive—and less secure—future for Europe’s car workers.
