Volkswagen May Cut 100,000 Jobs In Historic Overhaul

Volkswagen is reportedly planning one of the largest restructurings in the history of the global auto industry, with up to 100,000 job cuts and the closure of four German factories under consideration, according to people familiar with the matter. The plans, which CEO Oliver Blume is said to have presented to senior executives this week, are expected to be discussed by Volkswagen's supervisory board at a July 9 meeting. The factories reportedly being considered for closure are Volkswagen's plants in Hanover, Zwickau, and Emden, along with Audi's Neckarsulm site. Shutting those four facilities alone could put more than 45,000 jobs at risk on top of roughly 50,000 cuts already planned. In absolute terms, axing 100,000 jobs and four assembly plants would mark the largest restructuring in automotive industry history, comparable to General Motors' overhauls leading up to and during its 2009 bankruptcy, as well as the early-1990s GM cuts that eliminated as many as 74,000 jobs and shut or idled 21 plants. Volkswagen is also reportedly planning to cut investment by about 15% to just over €130 billion (roughly $148 billion) over the next five years. Blume and CFO Arno Antlitz are said to be aiming to fundamentally restructure the 89-year-old company, including potentially spinning off the core VW brand and parts operations into separate entities. The pressure on Volkswagen stems from mounting Chinese competition led by BYD, Chery, SAIC, and Leapmotor, stiff U.S. tariffs on car imports, and weakening European demand. According to AlixPartners, non-Chinese automakers' market share in China fell to 32% in 2025 from 57% in 2020. Volkswagen, once China's top automaker, was overtaken by BYD in 2024 and fell to third place behind Geely in 2025. Volkswagen shares were trading at 16-year lows Friday, down 3.4%, suggesting investors are skeptical the plan will succeed. Volkswagen's works council and Germany's IG Metall union vowed to resist the measures, and the premier of Lower Saxony the state that is Volkswagen's second-largest shareholder said the state would not agree to the plan. In its 2025 financial year, Volkswagen's global workforce was 667,164, with almost 43% employed in Germany. #Volkswagen #AutoIndustry #BYD 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.