Volkswagen proposes up to 100,000 job cuts and closes four German factories
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2 months · 18 summary articles
Volkswagen is preparing to slash up to 100,000 jobs worldwide and close four German factories as part of an unprecedented restructuring plan that would eliminate nearly one in six positions across the 667,164-strong workforce. The radical cost-cutting initiative, which the company’s supervisory board will review on 9 July, was confirmed by multiple German and international outlets on Friday, including *Manager Magazin*, *Financial Times*, *Bloomberg*, *CNBC* and *Politico Europe* .
The proposed closures target Volkswagen plants in Hannover, Zwickau and Emden, as well as Audi’s factory in Neckarsulm, collectively employing more than 45,000 workers. These sites would be added to the 50,000 redundancies already agreed with the IG Metall union through 2030, effectively doubling the scale of the earlier plan. Volkswagen’s global headcount stood at 667,164 at the end of 2025, with 43% based in Germany, meaning the cuts would affect roughly 15% of the entire workforce.
Chief executive Oliver Blume is pushing the accelerated restructuring to address deteriorating competitiveness in China, the impact of tariffs and the financial strain of heavy investments in the electric-vehicle transition. Speaking at the company’s last annual general meeting, Blume warned that “never before has the level of risk been so high,” signalling the urgency of the overhaul .
Beyond job losses, Volkswagen is also considering a 15% reduction in planned investments for 2026–2030, trimming the total to just over €130 billion, and exploring a major corporate reorganisation that would separate the core Volkswagen brand from its spare-parts business to streamline operations and improve profitability. A company spokesperson declined to comment on internal documents, stating that all decisions remain subject to the supervisory board’s deliberations .
The proposals have drawn immediate resistance from labour representatives. IG Metall and Volkswagen’s works council vowed to fight any factory closures or expanded layoffs, with committee chair Daniela Cavallo, union leader Christiane Benner and Lower Saxony labour representative Thorsten Groeger issuing a joint statement: “If these plans go ahead, we will do everything in our power to stop them.” Lower Saxony, which holds a significant stake in Volkswagen, wields considerable influence over strategic decisions and is expected to play a decisive role in the upcoming vote .
Seat, Volkswagen’s Spanish subsidiary, has sought to distance itself from the German cuts. Seat CEO Markus Haupt confirmed that no job reductions are planned in Spain, where the company has maintained stable employment since 2025 and is focusing on cost control and the commercial launch of the new Cupra Raval after completing the Martorell plant’s electric-vehicle transformation .
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