Volkswagen Plans to Cut 100,000 Jobs and Consider Closing Four More Plants

German automaker Volkswagen Group is planning a major restructuring that could involve cutting up to 100,000 jobs and closing four additional plants, according to a report by the economic media outlet Manager Magazin on June 26.

Citing internal sources, Yonhap News reported that the restructuring plan includes reducing the global workforce of 657,000 by 100,000 and shutting down Volkswagen plants in Hannover, Zwickau, and Emden, as well as an Audi plant in Neckarsulm.

CEO Oliver Blume is said to have presented this proposal ahead of a board meeting scheduled for early next month. A Volkswagen spokesperson stated, "We do not comment on internal confidential documents," but acknowledged that "the entire automotive industry and the Volkswagen Group are indeed undergoing a very fundamental transition."

Volkswagen has entered emergency management starting in 2024 due to declining sales in its largest market, China, and struggles with the transition to electric vehicles, which have significantly reduced its operating profit. At that time, the company announced a restructuring plan to cut 35,000 jobs in Germany and halt assembly at its Osnabrück and Dresden plants by 2030.

Recently, the group set a target to reduce its workforce by 50,000, with 28,000 retirements already confirmed. Manager Magazin described the additional job cuts as "an unprecedented level, double the existing target."

However, Volkswagen faces potential pushback from the state government of Lower Saxony, which holds a 20% stake in the company and can exercise veto power over major decisions, including restructuring. Lower Saxony's Prime Minister Olaf Lies (SPD) suggested in April that to preserve jobs and production capacity, German plants should consider joint production of vehicles with Chinese companies.