Volkswagen is preparing to cut up to 100,000 jobs and close four German factories, according to reports that if confirmed would almost double previously announced staff reductions at Europe’s biggest carmaker. The German automotive giant employs more than 650,000 people across its brands, which include Audi, Bentley, Skoda, Seat and Cupra, and has been hit hard by growing competition from Chinese rivals and the struggle to shift from combustion engines to electric cars.
A management presentation at a board meeting outlining the dramatic cost-cutting plans was reported by Germany’s Manager Magazin, which said the proposals currently involve shutting an Audi site in Neckarsulm as well as VW plants in Hanover, Zwickau and Emden. The magazine noted the plans could be watered down before a supervisory board meeting next month, where chief executive Oliver Blume’s deepening overhaul is due to be discussed. Blume has already announced a strategy aimed at cutting €11bn (£9.49bn) from costs.
“VW plans to cut up to 100,000 jobs and close four German factories, doubling previous reductions as Chinese competition reshapes the auto industry.”
Volkswagen declined to comment on the reports, with a spokesperson saying the company would not “pre-empt the process”, a sensitive one involving staff and their unions. However, they pointed to widely reported challenges facing legacy brands from more nimble Chinese rivals that have made huge inroads into Europe with electric vehicles and plug-in hybrids. “It is correct that the entire automotive industry and the Volkswagen Group are undergoing a profound transformation,” the spokesperson said. “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.”
On Friday, the spokesperson cited tariffs, competition and “stagnating, sometimes declining” markets, warning of “burdens on the company reaching tens of billions of euros per year”. The cuts are significantly deeper than those announced in 2024 and, the spokesperson said, survival requires “a sharper focus” on costs and investment. With four German factories in the balance and 100,000 jobs at risk, the next month will be decisive for Volkswagen’s future.