Volkswagen's board of directors has approved a large-scale cost-cutting program that plans to cut 50,000 jobs and halve the model line by 2030.

In addition, the automaker plans to reduce the complexity of its models by 75%.

The company's respective statement noted that four German plants will not be able to guarantee competitiveness in 2031-2034.

This restructuring will be the largest transformation program in the company's history, DW reports.

Volkswagen has adopted the cost-cutting program amid growing competition from Chinese manufacturers and rising import tariffs in the US, according to CNN.

The company employs about 650,000 people.

In the first half of this year, Volkswagen reported a 30% drop in after-tax profit due to a decline in sales in China.