Volkswagen is planning to cut up to 100,000 jobs and shut four plants in the biggest overhaul in its history. The carmaker, the world’s second-largest, is aiming to slash investment by around 15% as it faces continued pressure from Chinese electric-vehicle manufacturers.
It has been revealed that Volkswagen is set to restructure, including slashing investment by over £112 billion in the next half decade. The plans are driven by a decline in profits, high domestic operating costs and intense electric vehicle competition. The headcount reductions include 100,000 job losses worldwide, eliminating 50,000 positions in Germany by 2030, slicing 19,000 jobs by the end of 2026 and reducing executive salaries by 10%. Meanwhile, four plants in Germany have also been earmarked for closure, including Hanover, Zwickau, Emden, and Audi’s Neckarsulm facility.
The restructuring is being led by CEO Oliver Blume and CFO Arno Antlitz. Despite peaking in 2023, Volkswagen has suffered financial decline since, including reporting its lowest earnings in nearly a decade in 2025.
Bosses say they face fierce competition from the Chinese electric vehicle market which has impacted their earnings in recent times. They have pledged to cut back the company’s portfolio to focus on the core business.
Financial reports show that Volkswagen employed 667,164 people in the last year. Of these, 43% were employed in Germany.
Meanwhile, the company’s UK headquarters is based in Milton Keynes. It currently employs over 900 people nationwide as well as a further 25,000 who work indirectly for the firm.
In a joint statement, Volkswagen’s works council and the IG Metall union said: “Should such plans go ahead, we would do everything in our power to prevent them.”
Volkswagen declined to comment and told Manager Magazin: “The relevant facts of the matter will be discussed and approved by the relevant bodies. We will not pre-empt this process.”
“The Group Executive Board has repeatedly emphasised that our current business model no longer works for all brands in its present form.”