Volkswagen is staring down its toughest restructuring in nearly nine decades and it could cost as many as 100,000 people their jobs.
According to a Reuters report, the German auto giant is weighing the closure of four factories: three Volkswagen plants in Hanover, Zwickau, and Emden, plus Audi’s facility in Neckarsulm. Together, these sites employ more than 45,000 workers. Add that to the 50,000 job cuts already agreed upon, and the total could hit six figures.
So, why is this happening? Volkswagen has been losing ground fast. Chinese automakers like BYD are eating into its market share, US tariffs are squeezing profits, and demand across Europe just isn’t what it used to be. On top of the layoffs, the company is reportedly considering trimming its investment budget by 15% over the next five years, and may even split its core VW brand and parts business into separate entities.
Volkswagen hasn’t officially confirmed any of this. A company spokesperson kept things vague, only saying that “far-reaching” change is needed across the group.
Unsurprisingly, this hasn’t gone down well with workers. IG Metall, Germany’s powerful union, along with Volkswagen’s works council and the state of Lower Saxony, have all come out swinging against the plan, promising to fight any factory closures or mass layoffs.
A final decision is expected soon, and it could reshape Germany’s auto industry for years to come. We’ll keep you posted as this story develops.
