Volkswagen Reportedly Considers Cutting Up to 100,000 Jobs in Major Restructuring
Volkswagen is reportedly preparing a sweeping restructuring plan that could see up to 100,000 jobs eliminated over the coming years as the German automotive giant responds to mounting financial and competitive pressures.
According to German business publication Manager Magazin, the proposed cuts would affect roughly 15% of Volkswagen’s global workforce and would be accompanied by the closure of four factories in Germany. The report also claims the company intends to reduce investment spending by 15% over the next five years.
The publication further reported that Volkswagen is considering separating its core Volkswagen passenger car brand and its auto parts division into independent entities as part of a broader corporate overhaul. The company also owns premium brands including Audi and Porsche.
Volkswagen declined to comment directly on the reported plans.
A company spokesperson told CNN that it does not comment on “internal, confidential documents,” adding that any proposals would first be discussed and approved through the appropriate corporate committees.
“The underlying matters will be discussed and approved in the respective committees. We will not pre-empt this process.”
The automaker currently employs nearly 660,000 people worldwide and had previously announced plans to eliminate 50,000 positions in Germany by 2030. In the United States, Volkswagen operates an assembly plant in Chattanooga, Tennessee, employing more than 4,000 workers.
Like several European manufacturers, Volkswagen has faced growing challenges in recent years. The company has been impacted by new tariffs on vehicle exports to the United States while also contending with intensifying competition from Chinese electric vehicle manufacturers such as BYD.
The spokesperson said the changing market environment requires the company to become more disciplined with its spending.
“Sharper focus as well as stricter discipline over costs and investment” are needed to adapt to the industry’s new realities.
The company also acknowledged that its long-standing strategy of manufacturing vehicles in Europe for export to global markets is no longer effective across all of its brands.
The reported restructuring is expected to face strong opposition from labour representatives.
Germany’s powerful labour union IG Metall and Volkswagen’s General Works Council issued a joint statement warning they would resist any large-scale workforce reductions.
“If such plans are pushed forward, we would prevent them with all our might.”
Investors reacted cautiously to the reports, with Volkswagen shares falling around 1.5% in early afternoon trading. The company’s stock has declined by more than 25% since the beginning of the year.
