Volkswagen weighs cutting up to 100,000 jobs and closing four German plants

Carmaker Volkswagen is reportedly considering cutting up to 100,000 jobs worldwide, double the 50,000 reductions already announced, according to information attributed to internal company sources. Four German sites are directly named as facing possible closure: the Hanover, Emden and Zwickau plants, along with the Audi site in Neckarsulm. The plan, named "Zielbild 2030" and led by chief executive Oliver Blume, is due to go before the Supervisory Board on 9 July, and its outcome is not yet settled.

The deterioration is visible in the accounts: the group's operating profit fell 53% in 2025 to 8.9 billion euros, on near-flat revenue of around 322 billion. The investment envelope has been cut to about 130 billion euros over five years, and the group sold its marine-engine division Everllence to the Bain Capital fund for 7.4 billion euros, in a move to refocus on cars.

The actors agree on the structural causes: competition from Chinese electric-vehicle makers, which are establishing lower-cost operations in Europe, US tariffs that narrow access to the North American market, and the cost of the energy transition. For the euro area's largest economy, where the car industry accounts for roughly 5% of GDP and directly employs more than 800,000 people, the scale of this restructuring raises questions about the sustainability of a high-cost production model.

Several points remain uncertain or disputed. Job-protection agreements reached with the IG Metall union bar forced layoffs and site closures in Germany at least until 2030, which constrains the timetable. The weight given to union counter-power, the national or continental reading of the crisis, and the role of asset sales vary between actors. The 9 July decision could open prolonged labour negotiations.