Volkswagen to cut 100,000 jobs around world and shut 4 plants
Volkswagen plans to lay off 100,000 people and close four factories in the biggest overhaul in its history. The world’s second-largest automaker aims to cut its investment by around 15% as it faces ongoing pressure from Chinese electric vehicle makers.
It has been revealed that Volkswagen is preparing for a restructuring that will include cuts in investment of more than £112bn over the next five years. The plans are fueled by a decline in profits, high domestic operating costs and intense electric vehicle competition. Headcount reductions include the loss of 100,000 jobs worldwide, the elimination of 50,000 positions in Germany by 2030, the cutting of 19,000 jobs by the end of 2026, and the reduction of executive salaries by 10%. Meanwhile, four factories in Germany are also scheduled to close, including Hannover, Zwickau, Emden and Audi’s Neckarsulm plant.
The restructuring is led by CEO Oliver Blume and CFO Arno Antlitz. Despite peaking in 2023, Volkswagen has fallen financially since then, reporting its lowest earnings in almost a decade in 2025.
Bosses say they face fierce competition in the Chinese electric vehicle market, which has recently hit earnings. They promised to reduce the company’s portfolio to focus on core business.
Financial reports show Volkswagen employed 667,164 people last year. 43% of them were employed in Germany.
Meanwhile, the company’s UK headquarters is in Milton Keynes. It currently employs more than 900 people nationwide, as well as a further 25,000 people working indirectly for the firm.
The Volkswagen works council and the IG Metall union said in a joint statement: “If such plans come true, we will do everything in our power to prevent them.”
Volkswagen declined to comment and told Manager Magazine: “The facts of the matter will be discussed and confirmed by the relevant institutions. We will not pre-empt this process.”
“The Group Executive Board has repeatedly emphasized that our current business model in its current form no longer works for all brands.”
