Volkswagen is considering cutting up to 100,000 jobs as part of a major restructuring plan.
The plan may also include closing several German factories and reducing costs by €11 billion by the end of the decade.
The move comes as the company faces weak demand, rising competition, and pressure from Chinese and US rivals.
Volkswagen is planning a major overhaul that could involve cutting tens of thousands of jobs and closing factories as part of a broader push to improve competitiveness, according to Manager Magazin.
The report said Chief Executive Officer (CEO) Oliver Blume presented the restructuring plan during a recent management board meeting. Volkswagen did not comment on the specific details but said the company is working on a long-term plan to realign its operations.
1 June 2026
Get the latest issue of Outlook Business
The automaker currently employs around 6,57,000 people globally and is under pressure from slowing demand, competition in Europe, and challenges in China and the US.
Deep Cost-Cutting and Restructuring Plan
According to the report, the plan could include doubling earlier job reduction targets to as many as 1,00,000 positions. It may also involve cutting €11 billion in overhead costs by the end of the decade.
The report added that Volkswagen is considering closing four German plants, including sites linked to Audi and the VW brand. It is also exploring structural changes such as separating parts of its components business and potentially the core VW brand to streamline operations. Volkswagen said its executive board has been working on a future-oriented plan to reshape the company.
Labour Pushback and Execution Challenges
Any major restructuring is expected to face strong resistance from labour representatives, who hold significant influence on Volkswagen’s supervisory board. Worker representatives occupy half of the board seats, along with additional representation from the German state of Lower Saxony.
Labour leaders have already criticised the reported plans, saying they would “unsettle” workers and regional economies, according to a joint statement from the works council and IG Metall union.
Previous restructuring efforts have also faced dilution during negotiations, raising questions about how much of the proposed cuts and closures will ultimately be implemented.
