Volkswagen has announced plans to cut up to 100,000 jobs worldwide by the end of the decade, marking one of the largest workforce reductions in the history of the global automobile industry.

The German carmaker said on Thursday that its management and trade unions had agreed to eliminate a further 50,000 positions, on top of 50,000 job cuts that had already been approved.

The reductions would affect around 15 percent of Volkswagen’s global workforce. The scale of the restructuring is expected to surpass major job cuts previously carried out by other international carmakers, including General Motors following its 2009 bankruptcy.

Volkswagen said the workforce reductions were necessary to bring employment levels in line with the company’s economic situation. The group, which includes major brands such as Audi and Porsche, is seeking to reduce costs and improve its competitiveness in an increasingly difficult global market.

The announcement has also raised concerns about the future of several major German production sites. Volkswagen said the long-term future of plants in Hannover, Emden, Zwickau and Neckarsulm could not be guaranteed. Closing any of these facilities would represent the first large-scale shutdowns of Volkswagen factories in Germany.

The potential closures have caused anxiety among workers and communities that depend heavily on the automobile industry. Employees and local businesses fear that the loss of factory jobs could have a wider economic impact on surrounding regions.

Volkswagen is facing pressure from several directions, including US tariffs, strong competition from Chinese manufacturers and weaker-than-expected demand for electric vehicles. The challenges have forced Europe's largest carmaker to reconsider its production strategy and business structure.

Despite the scale of the cuts, Volkswagen CEO Oliver Blume described the restructuring as an important step toward securing the company’s future.

As part of the wider reform programme, Volkswagen plans to invest hundreds of billions of euros over the coming years in research, development and new technologies. The company also intends to strengthen its position in North America and increase exports to countries in the Global South.

Volkswagen will also reduce the number of businesses and holdings under its control by approximately one-third in an effort to simplify its structure and speed up decision-making.

The company said the reforms are designed to make Volkswagen more efficient, technologically competitive and better prepared for the rapidly changing global automobile market.