VW ID’s LIDAR system (for autonomous driving). A BUZZ electric van is installed during media day at the Volkswagen AG commercial vehicle plant in Hannover, Germany, Wednesday, March 4, 2026.
Bloomberg | Bloomberg | Getty Images
Automobile major volkswagen Manager Magazine reports that the company plans to cut 100,000 jobs and end production at four factories in Germany over the next few years, in what would be the most fundamental overhaul in the company’s 89-year history.
Under the plan, reported on Friday, Europe’s largest carmaker will cut about 15% of its workforce as it fights increasing competition from Chinese car brands.
The Wolfsburg-based automaker also plans to cut its investment plans by around 15% over the next five years to just over 130 billion euros ($148.2 billion) and halt production at its plants in Hannover, Zwickau and Emden, as well as Audi’s Neckarsulm plant.
Volkswagen had already announced plans to make significant headcount cuts and launched a major product offensive aimed at boosting profitability.
However, the figures quoted by Manager Magazine represent a significant acceleration of planned job cuts, given that around 50,000 jobs are expected to be created across the German company by 2030.
Volkswagen has reached a deal with unions in late 2024 that avoids factory closures in Germany and excludes forced layoffs until the end of 2030.
According to Google Translate, a company spokesperson declined to comment on the “confidential internal documents” to CNBC, saying decisions will be made and approved by the relevant governing body.
“The entire group, including our brands and subsidiaries, must undergo major changes,” the spokesperson said.
Volkswagen stock was last seen trading 0.2% lower on Friday. The stock price has fallen more than 25% since the beginning of the year.
Volkswagen stock price since the beginning of the year.
Volkswagen’s General Works Council and German industrial union IG Metall have pledged to oppose the reported layoffs and plant closures.
“If such a plan goes ahead, we will do our best to prevent it,” the two countries said in a joint statement, according to a translation.
Volkswagen had approximately 657,400 employees at the end of the first quarter of 2026, the company said.
