Volkswagen to cut up to 100,000 jobs, close factories amid pressure

Volkswagen is set to undertake its most significant restructuring in its 89-year history, aiming to reduce production capacity and model diversity. The German automaker's board has decided on this extensive overhaul in response to mounting pressure from Chinese competition and U.S. tariffs.

The move could lead to the elimination of up to 100,000 jobs and the closure of four factories. Employees across Volkswagen's German plants protested the potential job losses on Thursday.

According to reports, Volkswagen is grappling with high costs and overcapacity. This, combined with increasing competition from China and U.S. import duties, is challenging the company's profitability. These issues are compounded by stagnating demand in its home market of Europe and substantial investments in electric vehicles.

Previously, in 2024, the company announced intentions to cut 35,000 jobs by 2030. This figure rose to 50,000 by the time the annual financial statements were released in March of this year. The Volkswagen Group also produces vehicles under brands such as Audi, Bentley, Lamborghini, Seat, Škoda, and Porsche. The future strategy will concentrate on the most profitable market segments.