Volkswagen is considering closing four plants Germany The company will lay off as many as 100,000 people, according to two people familiar with the matter who spoke to Reuters. The proposed plan has been shared with members of Volkswagen’s supervisory board and will be discussed at a meeting on July 9.
The company took these steps because it faced pressure from China car manufactureris becoming a stronger global competitor. Volkswagen is considering closing four German plants in Hannover, Zwickau and Emden as well as Audi’s Neckarsulm plant, sources said.
Volkswagen factory closed
Closing these four plants could result in more than 45,000 job losses work at riskAccording to Reuters. These possible job cuts come on top of Volkswagen and the unions having agreed to cut 50,000 jobs by the end of 2024. If the new plan goes ahead, the total number of layoffs at Volkswagen could reach about 100,000.
Volkswagen CEO Oliver Blume presented the restructuring plan to company executives earlier this week to gain support ahead of further discussions, Reuters reported. Blum is expected to face strong opposition from labor unions and the German state of Lower Saxony, Volkswagen’s second-largest shareholder. Details of Volkswagen’s overhaul plan were first reported by German publication Manager Magazine.
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Volkswagen latest: It’s all about cost cutting and corporate change
Volkswagen also plans to reduce investment spending by about 15% over the next five years to just over 130 billion euros ($148 billion), Manager Magazin reported. The magazine also reported that Blume and Chief Financial Officer Arno Antlitz want to completely reinvent the 89-year-old company. Their reported plans include splitting Volkswagen’s main passenger car business and its parts business into separate entities.
Volkswagen There was no comment on the reported confidential documents regarding the restructuring plan. However, a Volkswagen spokesman said “profound” changes were needed across the group, including all its brands and subsidiaries. Volkswagen’s union and Germany’s powerful IG Metall union strongly opposed the reported plans. The two labor groups said they would do whatever they could to stop the plans if Volkswagen goes ahead with them.
Workers oppose layoffs
Porsche SE, Volkswagen’s largest shareholder through Porsche and the Piech family, declined to comment on the reports. In fiscal year 2025, Volkswagen had 667,164 employees worldwide. Nearly 43% of Volkswagen’s global employees work in Germany. Volkswagen shares were near their lowest level in 16 years on Friday morning, down 0.4%, a sign that investors are unsure whether the restructuring plan will succeed.
