Volkswagen plans 100,000 job cuts and four plant closures in Germany

European automakers are slashing capacity as they grapple with Chinese competition, weak EV demand, and tariff pressures. Volkswagen reportedly plans to cut 100,000 jobs (15% of its global workforce) and close four German plants, marking the deepest overhaul in its 89-year history Source: arstechnica, cnbc. The affected sites are Hanover, Zwickau, Emden, and Audi's Neckarsulm plant Source: thenextweb, engadget. The company had previously agreed with unions to avoid closures until 2030, but now says 'the entire Group must undergo profound change' Source: engadget, cnbc. Unions, including IG Metall, have vowed to fight the plans Source: engadget.

Porsche's restructuring

Meanwhile, Porsche plans to move Cayenne production from Slovakia to its Leipzig plant, but only if workers accept pay cuts to offset lower labour costs in Slovakia Source: euronewsen. The move is part of a broader cost-cutting drive amid a sales slump in China and U.S. tariffs. CEO Michael Leiters cited 'persistent pressure on the automotive industry' Source: euronewsen.

Broader context

These developments come as the EU confronts a 'China shock' from surging Chinese exports. EU trade chief Maros Sefcovic and Chinese Commerce Minister Wang Wentao are set to launch a new trade consultation platform Source: scmp. VW's CFO Arno Arnitz said the company's operating margin is 'far too low' and requires reducing complexity Source: arstechnica. The carmaker's profits fell 44% in 2025, and its stock is down 25% year-to-date .