Volkswagen is preparing to implement a significant reduction in its global workforce, with plans to cut up to 100,000 jobs as part of a broader cost-saving strategy. This move, which could rank among the largest layoffs by a single company, aims to address mounting challenges including competition from Chinese automakers, U.S. tariffs, and declining profitability.
The automaker, which employs approximately 625,000 people worldwide, intends to accelerate its existing goal to reduce 50,000 jobs in Germany by 2030. The new measures would nearly double that figure and include the closure of four German manufacturing plants located in Emden, Zwickau, Hanover, and Neckarsulm—the latter an Audi facility.
In addition to workforce reductions, Volkswagen plans to cut its domestic production capacity by 500,000 vehicles, reflecting a strategic shift in its manufacturing and operational footprint. A source familiar with the company’s internal plans indicated the additional 50,000 cuts would be in line with efforts to streamline the business amid challenging market conditions.
A Volkswagen spokesperson declined to confirm details but reiterated concerns over the viability of the company’s traditional business model. “The Executive Board has repeatedly stated that our current business model no longer works across all brands: developing cars in Germany, producing them in Europe and exporting them to the world,” the representative said in a statement.
The announcement has drawn swift criticism from employee representatives, who condemned the proposal. Workers’ groups have expressed concern over the potential impact on jobs and the industrial landscape in Germany, a country where Volkswagen is a major employer and a key player in the automotive sector.
The company has yet to provide additional details or an official timeline for the planned changes, and it remains unclear how these cuts will be implemented across different divisions. Volkswagen’s move comes amid broader industry shifts as automakers face increasing pressure to adapt to new technologies, international trade barriers, and intensifying competition from emerging markets.