Volkswagen is reportedly planning to cut up to 100,000 jobs and close four German factories, according to a report from Germany’s Manager Magazin, in what would be the most radical restructuring in the company’s 88-year history. The proposals by Chief Executive Oliver Blume would double the previously announced staff reductions and are expected to be discussed at a supervisory board meeting next month, the magazine reported, citing insider sources.
The plants identified for medium-term closure include Volkswagen’s facilities in Hanover, Zwickau, and Emden, as well as an Audi site in Neckarsulm. The jobs at risk represent roughly 15% of the group’s global workforce of more than 650,000 employees across brands including Audi, Bentley, Skoda, Seat, and Cupra.
A Volkswagen spokesperson declined to comment on the specifics of the report, saying the company would not “pre-empt the process,” which involves sensitive negotiations with staff and unions. However, the spokesperson pointed to widely acknowledged challenges facing legacy automakers, stating that “the entire automotive industry and the Volkswagen Group are undergoing a profound transformation.”
The company’s internal assessment is stark. “The executive board has repeatedly stated that our current business model no longer works across all brands: developing cars in Germany, producing them in Europe and exporting them to the world. The world has fundamentally changed in recent years,” the spokesperson said. On Friday the spokesperson also cited tariffs, competition, and “stagnating, sometimes declining” markets that can create “burdens on the company reaching tens of billions of euros per year.”
Blume has already announced a strategy aimed at cutting €11 billion from costs. The reported job cuts and plant closures would significantly deepen those efforts. Manager Magazin said the proposals could still be watered down before final approval.
Volkswagen’s struggles are most acute in China, the world’s largest auto market, where it has lost ground to domestic electric-vehicle makers such as BYD. The company has been fighting back with a “in China, for China” strategy, investing $3.5 billion in locally designed cars. In March, VW reclaimed car sales dominance in China for the first two months of 2026, just ahead of Toyota, as fading government subsidies for greener cars dented BYD’s momentum. Yet earlier this month, BYD’s chairman said the company aims to become the world’s largest automaker within five years, challenging Toyota’s long-held crown. VW’s Chinese joint ventures with FAW and SAIC held a combined 13.9% share of the country’s passenger vehicle market in sales terms, followed by Geely at 13.8% and Toyota at 7.8%, according to data from the China Passenger Car Association.
The Volkswagen news adds to a wave of major job-cut announcements across industries. As MSI has reported, layoffs have accelerated across corporations while hiring has stalled, with Amazon, UPS, Dow, and other companies eliminating tens of thousands of positions in recent months.