German factories also being targeted for closure in major restructuring
Volkswagen is considering cutting up to 100,000 jobs and closing four German factories in what would be the largest restructuring in the company's 89-year history, according to two people familiar with the matter cited by Reuters.
The four plants under consideration are in Hanover, Zwickau, and Emden, plus Audi's facility in Neckarsulm. According to Reuters, closing those sites would put more than 45,000 jobs at risk — on top of the 50,000 cuts already agreed with unions in late 2024, bringing the potential total to around 100,000.
CEO Oliver Blume presented the plans to senior executives earlier this week, according to Reuters, ahead of a formal supervisory board discussion scheduled for July 9. The plans were first reported by Manager Magazin.
Capital expenditure would also be cut by roughly 15%, bringing projected spending over the next five years to just above €130 billion ($148 billion).
‘Far-reaching change’ for VW
A Volkswagen spokesperson declined to comment on what the company called "internal, confidential documents," but said the group and all its brands "must undergo far-reaching change."
Volkswagen's General Works Council and IG Metall union responded with a joint statement on Friday: "Should such plans go ahead, we would do everything in our power to prevent them."
Workers across the broader VW group are covered by employment guarantees that run until 2030, with Audi workers protected until 2033, according to Reuters.
The plans would also involve spinning off the core VW brand and parts operations into separate entities — a move analysts say could eventually pave the way for separate stock market listings. VW shares were trading at 16-year lows on Friday, down 0.4%, which Reuters said suggested investor scepticism that so ambitious a restructuring could be carried out.
Competition behind job cuts
The pressure behind the cuts is largely competitive. According to Reuters, non-Chinese automakers' market share in China fell to 32% in 2025 from 57% in 2020, citing AlixPartners. Having been China's top automaker for years, Volkswagen was overtaken by BYD in 2024 and fell to third behind Geely in 2025, Reuters reported.
Chinese automakers have also been expanding into Europe: BYD, Chery, SAIC and Leapmotor doubled their combined European market share through May from a year ago, according to Reuters, citing ACEA data.
The same competitive pressure is hitting peers. BMW last week cut its annual profit margin forecast from 4–6% to 1–3%, citing weak China demand, according to Yahoo!Finance.
Renault separately announced plans to cut 800 engineering jobs in France by end of 2027, with its chief technology officer Philippe Brunet telling Reuters that the rapid expansion of Chinese manufacturers in Europe was "the main reason behind the changes."
The job cut plans sit in some contrast to a separate announcement from Volkswagen's China operation this week. According to a press release, the company is launching the Volkswagen and Jetta brands in Uzbekistan, with vehicles supplied from its Chinese manufacturing base — the first time an export market has been managed entirely by Volkswagen's China operation.
