Volkswagen is set to undertake a major restructuring, which includes reducing its workforce by approximately 15%, equating to 100,000 jobs, and halting production at four plants in Germany. This decision, reported by Manager Magazin, is part of a broader strategy to combat rising competition from Chinese car manufacturers and to streamline operations.
The company plans to decrease its investment by about 15%, bringing it to just over 130 billion euros ($148.2 billion) over the next five years. This move accelerates previous job cut expectations, which had projected around 50,000 job losses in Germany by 2030.
Volkswagen's spokesperson emphasized the necessity for profound changes across the entire group, although they refrained from commenting on the specifics of the internal documents. The company's shares fell 0.2% on the news and have dropped over 25% year-to-date.
In response, Volkswagen's General Works Council and the industrial union IG Metall have vowed to resist these job cuts and plant closures, indicating potential labor disputes ahead. As of the first quarter of 2026, Volkswagen employed approximately 657,400 individuals, highlighting the scale of the impending changes