Volkswagen is reportedly preparing to eliminate 100,000 positions—about 15 percent of its worldwide staff—at its German facilities, according to a Manager Magazin report. The move would represent the largest restructuring in the automaker's 89‑year history.
The cuts would involve shutting down production at the Hanover, Zwickau, Emden and Audi Neckarsulm plants. Zwickau, recently retooled for electric‑vehicle output across VW, Audi and Cupra, has already seen intermittent halts as demand for EVs weakened. The company had earlier announced a 50,000‑job reduction, citing U.S. tariffs and rising Chinese competition, and unions had secured an agreement in late 2024 that no further layoffs or closures would occur before 2030. Volkswagen now appears to be moving beyond that pact.
German unions, led by IG Metal and the General Works Council, issued a joint statement promising to block the plan "with all our might." A VW spokesperson told CNBC that the entire group must undergo profound changes but declined to comment on the confidential documents behind the proposal. The announced cuts set the stage for potential labor actions and heightened uncertainty around the future of the affected plants.
