Volkswagen CEO Oliver Blume has announced plans to reduce the company's global workforce by up to 100,000 jobs over the next few years, according to reports from Manager Magazin. The restructuring will also include the discontinuation of production at four German plants - Hanover, Zwickau, Emden, and Audi's Neckarsulm facility. The Porsche and Audi owner currently employs around 657,000 people, meaning the proposed cuts would represent a significant portion of the workforce. Production at these locations will be phased out once current model lines are completed, with the closures expected to take place over the medium term. A Volkswagen spokesperson stated that the company would not comment on confidential documents, with relevant facts to be discussed and approved by relevant bodies, emphasizing that the entire group must undergo far-reaching change. The proposed measures would go beyond the company's existing plan to cut 50,000 jobs and could affect nearly 15% of Volkswagen's global workforce.
As reported by Manager Magazin, Blume intends to reduce investment by around 15% to just over €130 billion ($148 billion) over the next five years. The CEO and CFO Arno Antlitz are planning a complete restructuring of the company, with the entire group including brands and subsidiaries undergoing far-reaching changes. This investment reduction represents a significant shift from Volkswagen's current spending levels and reflects the company's need to optimize its capital allocation amid challenging market conditions. The plans also involve cutting general overhead costs by €11 billion ($12.5 billion) by the end of this decade. The proposed restructuring, which is awaiting board approval, includes a 15% cut in Volkswagen's planned investments, bringing its capital spending to just over €130 billion over the next five years.
According to Manager Magazin's report, Blume and the group's CFO aim to completely restructure the company citing sources. The restructuring will involve spinning off Volkswagen's namesake core VW brand and parts-manufacturing plants from the current group structure, incorporating them into separate entities. This organizational change represents a fundamental shift in how Volkswagen operates and positions its various brands within the group structure. The nameplate has long struggled with low profitability, making this separation crucial for the group's leaner structure. Volkswagen is considering separating its core VW passenger car brand and parts business into standalone entities as part of a broader effort to streamline operations, with Blume repeatedly stressing the need to sharpen the group's focus on its core automotive business and improve profitability.
The proposed restructuring faces significant opposition from labor representatives, with the company's works council and IG Metall union vowing to strongly oppose any attempt to close plants or implement deeper job cuts, as reported by Manager Magazin. Labor leaders were swift to push back against the new plans, stating "unsettle our workforce and the regions where we operate," according to a joint statement from the company's works council and the IG Metall union. "Should such plans be pursued, we would oppose them with all our might." Pushing through job cuts at Volkswagen is particularly challenging as worker representatives occupy half the seats on the carmaker's supervisory board, and the German state of Lower Saxony — which tends to side with unions — has another two seats. Blume's renewed restructuring push will be presented to the supervisory board next month for discussion, with VW's plans often getting watered down as labor representatives make up half of the body. The premier of Germany's Lower Saxony state also said the state would not support the restructuring plan.
Volkswagen shares fell 3.4% on Friday to their lowest level in 16 years, suggesting investors remain sceptical about the proposed turnaround. According to Reuters, Volkswagen employed 667,164 people globally in 2025, with nearly 43% of its workforce based in Germany. Pressure on Europe's largest automaker has intensified as Chinese manufacturers continue to gain market share while US tariffs add to cost pressures. According to AlixPartners, non-Chinese automakers' share of China's passenger vehicle market fell to 32% in 2025 from 57% in 2020. Volkswagen, once China's largest automaker, lost the top spot to BYD in 2024 and slipped to third place behind Geely in 2025. Chinese brands including BYD, Chery, SAIC and Leapmotor have also expanded rapidly in Europe, further intensifying competition. Independent automotive analyst Matthias Schmidt said Volkswagen is now paying the price for delaying structural reforms, stating "The VW Group has suffered from years of neglect in readjusting workforce numbers due to the stranglehold the regional government and trade unions have on the company."
