Jobs Report: Volkswagen Plans To Cut 100,000 Positions And Close Four German Plants

Volkswagen is reportedly planning to eliminate up to 100,000 jobs worldwide, roughly 15 percent of its entire global workforce, and close four production facilities in Germany, according to a report published Friday by German business magazine Manager Magazin.

The plan, which CEO Oliver Blume has reportedly already presented to the management board, would represent the most radical restructuring in Volkswagen's 89-year history.

VW declined to comment on "internal, confidential documents."

The scale of what is being considered is striking even for a company that has been warning of an existential crisis for two years.

VW had already announced plans to cut around 50,000 jobs in Germany by 2030, itself described at the time as historically significant.

The new figure doubles that target. The four plants reportedly at risk of closure are located in Hanover, Zwickau and Emden, plus an Audi facility in Neckarsulm, with closures planned to coincide with the end of production cycles for the models currently built there.

Beyond the headcount reductions, VW is reportedly planning to reduce investment by 15 percent over five years and spin off its core Volkswagen brand and its components division into independent entities.

The pressure driving the plan is threefold. Net profit slumped 28 percent in Q1 2026.

US tariffs are costing the group roughly four billion euros per year. And Chinese electric vehicle manufacturers, led by BYD, are eating into VW's sales in both China and Europe.

VW sold 20 percent fewer vehicles in China in the first quarter alone. The company's own CFO said in April:

"The cost savings planned so far are not enough. If we fail to do this, we are putting our future at risk."

German union IG Metall and VW's General Works Council issued a joint statement Friday. "If such plans are pushed forward, we would prevent them with all our might."

The plan goes before VW's supervisory board on July 9.