100,000 jobs are at risk as Volkswagen considers factory closures amid a major restructuring plan affecting four plants.
Volkswagen may be preparing its biggest restructuring in years. A new report claims the German auto giant could cut up to 100,000 jobs and close four factories. That is double the 50,000 job cuts already planned across Volkswagen, Audi, Porsche, and software unit CARIAD by 2030.
Reports Not Confirmed Yet
The company has not confirmed the report. However, a spokesperson also did not deny it. Instead, the spokesperson said, “The board has repeatedly emphasised that our current business model no longer works for all our brands in its current form.”
According to Manager Magazin, the factories in Zwickau, Emden, Hanover, and Audi’s Neckarsulm plant could shut after current vehicle production ends. These sites build popular models like the ID.3, ID.4, ID.7, ID. Buzz, Transporter, Audi A5, A6, and E-Tron GT. The report also claims Volkswagen wants to separate its core brand from the wider Volkswagen Group. If that happens, the new businesses could later be listed separately on the stock market.
Volkswagen’s Challenges
Meanwhile, Volkswagen faces growing pressure from different directions. The company continues to battle high production costs, weaker electric vehicle profits, strong competition from Chinese automakers, and higher US tariffs. Reports also suggest Volkswagen plans to reduce investments by 15 percent over the next five years. A company spokesperson admitted, “The entire group must significantly improve its competitiveness. This requires a sharper focus and even more rigorous cost and investment discipline.”
The reported plans have already sparked strong reactions from workers. IG Metall union leader Christiane Benner and Volkswagen works council chief Daniela Cavallo warned they would resist any fresh cuts. They said, “If these plans come to fruition we would stop them with all our might.” They also urged management to focus on building competitive vehicles instead of cutting jobs.
For now, agreements with labour unions prevent compulsory layoffs until 2030 at Volkswagen and 2033 at Audi. Factory closures in Germany are also expected to remain off the table until at least the end of the decade.
