Volkswagen is considering closing four factories in Germany and cutting up to 100,000 jobs, according to two people familiar with the matter who spoke to Reuters. The proposed plan has already been shared with members of Volkswagen’s supervisory board and will be discussed at a meeting on July 9.
The company is taking these steps because it is facing pressure from Chinese carmakers, which are becoming stronger competitors around the world. Volkswagen is considering closing four German factories located in Hanover, Zwickau, Emden and Audi’s Neckarsulm plant, according to the sources.
Volkswagen factory closures
Closing these four factories could put more than 45,000 jobs at risk, as reported by Reuters. These possible job losses would come on top of the 50,000 job cuts that Volkswagen and labour unions had already agreed to in late 2024. If the new plan goes ahead, Volkswagen’s total job cuts could reach around 100,000.
Volkswagen CEO Oliver Blume presented the restructuring plan to senior company executives earlier this week to build support before discussing it further, according to the Reuters report. Blume is expected to face strong opposition from labour unions and the German state of Lower Saxony, which is Volkswagen’s second-largest shareholder. German publication Manager Magazin was the first to report details of Volkswagen’s overhaul plans.
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Volkswagen update: All on cost cuts and company changes
Volkswagen is also planning to reduce its investment spending by about 15% over the next five years to just over €130 billion ($148 billion), according to Manager Magazin. The magazine also reported that Blume and Chief Financial Officer Arno Antlitz want to completely reshape the 89-year-old company. Their reported plan includes separating Volkswagen’s main passenger car business and its parts operations into different entities.
Volkswagen did not comment on the reported confidential documents about the restructuring plans. However, a Volkswagen spokesperson said the entire group, including all its brands and subsidiaries, needs “far-reaching” changes. Volkswagen’s works council and Germany’s powerful IG Metall union strongly opposed the reported plans. The two labour groups said they would do everything in their power to stop the plans if Volkswagen moves forward with them.
Workers fight job cuts
Porsche SE, Volkswagen’s biggest shareholder through the Porsche and Piech families, declined to comment on the reports. Volkswagen employed 667,164 people globally in its 2025 financial year. Nearly 43% of Volkswagen’s global workforce is based in Germany. Volkswagen shares were trading near their lowest level in 16 years on Friday morning and were down 0.4%, suggesting investors were uncertain the restructuring plan would succeed.
