Volkswagen Weighs Up To 100,000 Job Cuts in Major Overhaul

German automaker Volkswagen is reportedly planning a significant restructuring that could impact as many as 100,000 employees worldwide. This potential overhaul, aiming to make the company leaner, follows years of cost-cutting efforts and comes amid a 44% profit decline in 2025 and intensifying market competition.

The strategy reportedly includes drastic measures such as closing four factories in Germany, reducing investment spending, and making substantial cuts to administrative staff. Specific facilities under pressure are said to be Volkswagen's plants in Hanover, Emden, and Zwickau, along with Audi's plant in Neckarsulm. Production at these sites is expected to cease once current vehicle programs reach the end of their life cycles.

Beyond manufacturing, the proposed reorganization may also involve separating Volkswagen's core brand and its components business into independent entities. While VW has not confirmed these details, a company spokesperson acknowledged that discussions are underway through appropriate governance channels. The spokesperson stated that "the entire group... must undergo extensive change" to maintain its competitive edge.