Volkswagen is considering a major restructuring that could result in up to 100,000 job cuts worldwide and the closure of four factories in Germany.
The information comes from Motor1, citing a report by the German magazine Manager Magazin. If confirmed, the move would represent the largest restructuring in the automaker’s history, surpassing its previous plan to eliminate around 50,000 positions by 2030.
The proposal presented by Volkswagen Group CEO Oliver Blume also includes the gradual shutdown of operations at the factories in Hanover, Zwickau, Emden, and the Audi plant in Neckarsulm as the models currently produced at those facilities reach the end of their life cycles. The proposal still requires approval from the company’s governing bodies.
In response to the reports, Volkswagen did not confirm the figures but acknowledged that its current business model “no longer works” for all of the group’s brands and stated that any decision will be discussed and approved through the company’s appropriate governance processes.
The automaker is facing mounting pressure due to declining demand in Europe, increasing competition from Chinese electric vehicle manufacturers, and the impact of U.S. tariffs.
The group is also seeking to reduce investments and cut costs in an effort to restore its competitiveness in a rapidly changing automotive market.
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