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Volkswagen Considers Historic Restructuring With Up to 100,000 Job Cuts and Four Plant Closures

Volkswagen is considering its largest restructuring to date as the automaker responds to declining profitability, weaker demand, and increasing competitive pressure.
Automotive assembly line.

Volkswagen is considering a restructuring that could eliminate up to 100,000 jobs worldwide, equivalent to approximately 15% of its global workforce, according to multiple reports. If approved, the plan would represent the largest reorganization in the company's 89-year history.


The proposed measures reportedly include the closure of four German production facilities in Hanover, Zwickau, Emden and Audi's Neckarsulm plant, which together employ more than 45,000 workers. Volkswagen's supervisory board is expected to discuss the proposals on July 9. The plans remain subject to approval and have not been finalized.


The restructuring would significantly expand cost-cutting measures agreed with unions in late 2024, which targeted approximately 50,000 job reductions. Under the latest proposal, both the core Volkswagen passenger car brand and the components division would also be separated into independent companies as part of a broader corporate reorganization.


Volkswagen has faced increasing financial pressure in recent quarters. The company reported first-quarter 2026 net profit of €1.56 billion, down 28% from a year earlier, while revenue declined 2% to €75.7 billion. The automaker has also estimated that U.S. tariffs are increasing annual costs by approximately €4 billion.


China, Volkswagen's largest market, has become another source of pressure after first-quarter vehicle sales declined 20% as domestic manufacturers, including BYD, continued to gain market share. Volkswagen shares have fallen more than 25% since the beginning of 2026, reaching their lowest level in 16 years.


The company has already reduced its planned investment programme by 15% to just over €130 billion over the next five years. Chief Financial Officer Arno Antlitz recently stated that the cost-saving measures implemented so far are insufficient and warned that further action is necessary to protect the company's long-term competitiveness.


German union IG Metall and Volkswagen's General Works Council have pledged to oppose the proposed restructuring, setting the stage for negotiations if the plans move forward.



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