Volkswagen is reportedly considering one of the largest restructuring efforts in automotive history. According to a report from Manager Magazin, Volkswagen is considering cutting as many as 100,000 jobs globally and closing four factories in Germany.
The reports come just one day after Tesla announced it would expand production and add thousands of jobs at its nearby Giga Berlin factory.
The proposals, which have not yet been officially approved, are expected to be discussed by Volkswagen’s supervisory board on July 9. Sources familiar with the matter told Reuters that the plans could include shutting down plants in Hanover, Zwickau, Emden, and Audi’s factory in Neckarsulm, putting more than 45,000 German jobs at risk.
If implemented, the cuts would more than double Volkswagen’s previously announced target of eliminating 50,000 positions by 2030 and would amount to roughly 15% of the company’s global workforce.
Volkswagen has acknowledged that its long-standing business model of manufacturing vehicles in Europe for export around the world is becoming increasingly difficult to sustain.
“The entire group, including its brands and subsidiaries, must undergo far-reaching change,” a Volkswagen spokesperson said, while declining to comment on the reported plans, describing them as “confidential documents.”
CEO Oliver Blume has reportedly been pushing for deeper restructuring measures since 2024, but previous attempts to close German factories were met with fierce resistance from labour unions and the state government of Lower Saxony, Volkswagen’s second-largest shareholder.
That continued on Friday, with Volkswagen’s works council and Germany’s powerful IG Metall union issuing a joint warning, stating: “Should such plans go ahead, we would do everything in our power to prevent them.”
The proposed cuts come as Volkswagen faces increasing pressure in China, once the company’s strongest market. According to industry data, non-Chinese automakers have seen their market share in China fall sharply in recent years as domestic brands rapidly gained ground.
Volkswagen, which was China’s top-selling automaker for decades, was overtaken by BYD in 2024 and slipped to third place in 2025. At the same time, Chinese manufacturers have accelerated their expansion into Europe and other international markets, increasing pressure on legacy automakers across multiple regions.
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