Volkswagen plans up to 100,000 job cuts and four German plant closures

Volkswagen is preparing the deepest restructuring in its 89-year history, planning to eliminate up to 100,000 jobs worldwide — double the previously announced target — and to close four plants in Germany, according to Manager Magazin and multiple sources Source: Manager Magazin via El Mundo; Source: Infobae. The plan, presented by CEO Oliver Blume, will be debated by the supervisory board on July 9.

The scale of the cuts

The group, which employs about 670,000 people globally, aims to reduce headcount by roughly 15% and cut investment by 15% over five years Source: El Mundo. The four German plants facing closure are Volkswagen's Hannover, Zwickau, and Emden facilities, plus Audi's Neckarsulm plant Source: Manager Magazin via El Confidencial; Source: Euronews. Previous agreements with the IG Metall union guaranteed job security until 2030, but the new plan would break that pact Source: La Vanguardia.

Reasons and context

The restructuring is driven by fierce competition from Chinese automakers like BYD, high US tariffs, weak demand in Europe, and the costly transition to electric vehicles Source: Clarin; Source: ABC. Euronews notes VW's net profit fell 28% in the first quarter of 2026, and CFO Arno Antlitz warned that cost reductions so far are insufficient Source: Euronews. Separately, VW is considering selling its 8.3% stake in Bayern Munich (held via Audi) and other non-core assets to raise cash Source: La Republica.