German car giant Volkswagen is considering cutting 100,000 jobs as part of a massive restructure that would be the biggest in the vehicle industry.
The company is weighing up closing four factories, with plans for the overhaul to be discussed by Volkswagen’s supervisory board on July 9, according to a report by Reuters, citing two people familiar with the matter.
Volkswagen is planning to cut 100,000 jobs, a report says. nna\NPearson
The world’s second-biggest car manufacturer has been facing fierce competition from Chinese rivals, steep US tariffs and crumbling demand in the European market, making Volkswagen’s current business model unsustainable.
Chief executive Oliver Blume put the proposals to top executives last week but the planned job cuts are expected to meet fierce opposition from unions and the state of Lower Saxony, the carmaker’s second-largest shareholder.
The shake-up was first reported by Manager Magazin, which also said the company would slash investment by about 15 per cent.
Blume wants to spin off Volkswagen brands, such as Audi, Skoda and Bentley, into separate enterprises, the report said.
A Volkswagen spokesperson refused to comment on the reported comments but said the entire company was facing a radical overhaul.
Volkswagen plants in Germany could be closed under the planned company shake-up. (Getty) Getty
“The entire group, including its brands and subsidiaries, must undergo far-reaching change,” they said.
Volkswagen’s workforce was 667,164 in 2025, with Germany accounting for about 43 per cent of employees.
When top executives planned mass job cuts and factory closures in 2024, it was met by angry opposition from trade unions, triggering a wave of strikes.
Management was forced to pull back, with sweeping redundancies and the closure of two car plants shelved.
Since then, Volkswagen has continued to lose sales and revenue, largely due to competition from Chinese car makers.