Volkswagen to Implement Up to 100,000 Job Cuts and Plant Closures, Report Reveals

German automaker Volkswagen Group is planning to cut up to 100,000 jobs and subsequently reduce or discontinue production at several of its plants, according to industry reports.

The company has declined to comment on a purported management presentation delivered at a board meeting that outlined significant cost‑cutting measures. Should the plan proceed, it would double the scale of previously announced staff reductions.

With a workforce exceeding 650,000 across its portfolio—which includes Audi, Bentley, Skoda, Seat and Cupra—Volkswagen has faced mounting pressure from increasing Chinese competition and the challenges of transitioning from combustion engines to electric vehicles.

A Volkswagen spokesperson stated that the company would not “pre‑empt the process,” noting the sensitivity of the matter, which involves employees and their unions.

The spokesperson also highlighted the broader challenges faced by legacy brands, citing competition from nimble Chinese rivals that have made significant inroads into the European market with electric and plug‑in hybrid vehicles.

“The automotive industry, and the Volkswagen Group specifically, is undergoing a profound transformation. The executive board has repeatedly emphasized that our current business model—developing cars in Germany, manufacturing them in Europe, and exporting them worldwide—no longer suits the current market,” the representative said.

According to Germany’s Manager Magazin, the CEO, Oliver Blume, will discuss the deepening overhaul at next month’s supervisory board meeting.

Blume has already unveiled a strategy aimed at cutting €11 billion (£9.49 billion) from operating costs.

The spokesperson cited tariffs, competition, and “stagnating, sometimes declining” markets as factors that could impose “burdens on the company reaching tens of billions of euros per year.”

The magazine highlighted that the proposals—subject to potential revision—currently involve the closure of four German factories in the medium term. These include the Audi site in Neckarsulm and VW plants in Hanover, Zwickau and Emden. The cuts are considerably deeper than those announced earlier in 2024.

“To survive the competition, the company must adapt, which requires sharper focus on costs and investment,” the spokesperson added.

“The entire group, including its brands and subsidiaries, must undergo profound transformation,” the spokesperson reiterated.

The group has made some progress against rivals in China itself. In March, it reclaimed sales dominance in the country’s largest auto market, the first two months of 2026, when Toyota also regained ground. Both surpassed the local electric‑vehicle champion BYD amid the fading subsidies for greener cars.

Earlier this month, BYD’s CEO stated that the company aims to become the world’s largest automaker, intending to usurp Toyota’s long‑held crown within five years.

VW’s Chinese joint ventures with FAW and SAIC held a combined 13.9 % share of the country’s passenger‑vehicle market in sales terms, according to data from the China Passenger Car Association. Geely led with 13.8 %, followed by a combined 7.8 % from Toyota’s joint venture with GAC and FAW.

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