Volkswagen is reportedly planning one of the biggest restructures in its history. The company is considering factory closures and up to 100,000 job cuts as it faces rising pressure in the global car market.
Sources said the German automaker may shut down four factories in Germany. These include plants in Hanover, Zwickau, Emden, and Audi’s Neckarsulm site.
The possible closures could put more than 45,000 jobs at immediate risk. This would add to the 50,000 job reductions already agreed with unions in late 2024. If approved, the total could reach 100,000 job cuts.
The company’s supervisory board has been informed about the proposal. The plans are expected to be discussed at a key meeting on July 9.
Oliver Blume, the CEO of Volkswagen, is leading the proposed changes. He is said to be seeking support from senior management for deep reforms.
Reports suggest the company may also reduce planned investments by 15 percent over the next five years. This would lower spending to just over €130 billion.
The proposed plan could also include splitting the core Volkswagen brand and parts business into separate entities. This would mark a major change for the 89-year-old company.
Volkswagen said the entire group needs major changes to stay competitive. However, the company did not confirm the details of the reported plan.
Workers’ unions, including IG Metall, strongly opposed the idea. They warned they would fight against the factory closures and 100,000 job cuts.
Volkswagen is under growing pressure from Chinese carmakers. Brands like BYD have gained strong ground in the electric vehicle market.
The company has also struggled with high costs, tariffs, and slower sales in China. In 2025, Volkswagen dropped to third place in China’s car market.
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Analysts say the possible 100,000 job cuts reflect the serious challenges facing Europe’s auto industry as competition increases worldwide.
