Volkswagen's Massive Restructure: 100,000 Jobs on the Chopping Block

Volkswagen is reportedly planning to cut 100,000 jobs and close four factories in what would be the largest restructuring in the automotive industry. The German car giant faces fierce competition from Chinese rivals, steep US tariffs, and crumbling demand in the European market.

CEO Oliver Blume presented the proposals to top executives, but the plans are expected to face strong opposition from unions and the state of Lower Saxony, Volkswagen's second-largest shareholder. The overhaul, first reported by Manager Magazin, may also involve slashing investment by about 15% and spinning off brands like Audi, Skoda, and Bentley into separate enterprises.

Volkswagen's workforce stood at 667,164 in 2025, with Germany accounting for about 43% of employees. Previous attempts at mass job cuts and factory closures in 2024 sparked strikes and were shelved, but ongoing sales losses due to Chinese competition have forced the company to reconsider drastic measures.