Volkswagen Plans to Cut 15% of Workforce and Close Four Plants in Germany

Volkswagen, the European automotive giant, is planning to eliminate approximately 100,000 jobs and halt production at four German plants over the coming years. This radical step, described as the most drastic in the company's 89-year history, aims to counter the growing competition from Chinese automakers in the global car market.

Details of the New Plan

According to a report published by Manager Magazin on Friday, the plan involves Europe's largest car manufacturer reducing about 15% of its workforce. The Wolfsburg-based company will also cut its planned investments by roughly 15%, bringing them to just over €130 billion ($148.2 billion) over the next five years. The plants affected by the closures include facilities in Hanover, Zwickau, and Emden, as well as the Audi plant in Neckarsulm.

Acceleration of Job Cuts

Volkswagen had already outlined plans for extensive job reductions and launched a broad product campaign aimed at boosting profitability. However, the latest figures indicate a sharp acceleration in the planned layoffs, with an earlier expectation of losing around 50,000 jobs across the company in Germany by 2030. These developments come after Volkswagen reached an agreement with unions in late 2024 to avoid plant closures in Germany and rule out compulsory redundancies until the end of 2030.

Management and Union Stance

A company spokesperson declined to comment on "confidential internal documents" when contacted, stating that decisions will be made and approved by the relevant governing bodies. The spokesperson added: "The entire group — including its brands and subsidiaries — must undergo fundamental change." In response, Volkswagen's General Works Council and the German industrial union IG Metall vowed to resist the reported layoffs and plant closures. A joint statement read: "If such plans are pursued, we will oppose them with all our might."

Stock Impact and Employment Figures

Volkswagen shares fell 0.2% on Friday, while the stock price has dropped more than 25% since the start of the year. According to the company, Volkswagen employed approximately 657,400 workers by the end of the first quarter of 2026. These moves come at a time when the European automotive industry faces mounting pressure from Chinese competitors, prompting major players to radically restructure their operations.