VW Plans to Slash 100,000 Jobs and Close Four German Plants

Volkswagen AG is preparing a sweeping restructuring plan under CEO Oliver Blume that could eliminate up to 100,000 jobs and shutter four German factories as part of a bid to slash €11 billion in overhead costs by 2030. The proposal, presented to the management board this week, marks a dramatic escalation in cost-cutting efforts at Europe’s largest automaker, which currently employs around 657,000 people worldwide. The plan includes closing plants in Hanover, Zwickau, Emden, and Audi’s site in Neckarsulm, along with potential separation of the core Volkswagen brand and its components operations to improve profitability. Blume will present the strategy to Volkswagen’s supervisory board next month, setting the stage for intense negotiations with labor leaders and state politicians who hold significant influence over restructuring decisions. The German Works Council and IG Metall union have already vowed to oppose the cuts “with all our might,” warning that such measures would destabilize the workforce and regional economies. Volkswagen’s push comes amid mounting pressures, including U.S. tariffs, a prolonged downturn in China, and intensifying competition in Europe from rivals like BYD and Stellantis. The company has already made progress in reducing its workforce by 28,000 through voluntary departures as part of a previously announced plan to cut 50,000 jobs by 2030. Volkswagen has also scaled back production capacity from 12 million vehicles annually to a more sustainable 9 million. The automaker’s shares rose 1.2% in Frankfurt following the report, though the stock remains down 25% for the year. A company spokesperson acknowledged the need for “profound change” but declined to comment on the specifics of the report. Analysts point to structural challenges, including the influence of unions and regional governments, which have historically hindered workforce adjustments. Matthias Schmidt, an independent auto analyst near Hamburg, noted that Volkswagen has “suffered from years of neglect in readjusting workforce numbers” due to political and labor constraints, with Chinese manufacturers exacerbating the pressure on the German giant.