Emden plant Photo: Volkswagen
Volkswagen CEO Oliver Blume is reportedly preparing the most dramatic overhaul in the automaker’s history, with plans that could eliminate up to 100,000 jobs worldwide and eventually close four factories in Germany.
The report, first published by Germany’s Manager Magazin, says the proposed restructuring goes well beyond the cost-cutting measures Volkswagen has already announced. Reuters and several other international outlets have since backed up the report’s broad outline, although Volkswagen has not officially confirmed the plans.
According to the report, production would eventually end at Volkswagen’s plants in Hanover, Zwickau, and Emden, as well as at Audi’s factory in Neckarsulm, Baden-Württemberg, after the current vehicle programs are phased out.
The reported plan would impact some of Volkswagen’s most important EV operations. Zwickau is the company’s flagship EV plant, and Emden builds the ID.4 and ID.7. While the report doesn’t suggest Volkswagen is scaling back its EV ambitions, it does point to a potential consolidation of EV production as the automaker looks to cut costs and boost profits.
The proposal would also reportedly cut Volkswagen’s planned five-year investment by around 15%, bringing it to just over €130 billion ($148 billion). Manager Magazin also said the company is considering separating the core Volkswagen passenger car brand and its parts business into standalone entities.
Volkswagen is under growing pressure to improve profitability while navigating a rapidly changing automotive market. The company’s shares have lost almost 60% of their value since Blume became CEO nearly four years ago. VW is also facing intense competition from Chinese automakers, higher costs tied to the shift to EVs, and the impact of tariffs in key markets.
A Volkswagen spokesperson told Manager Magazin, “The relevant facts of the matter will be discussed and approved by the relevant bodies. We will not pre-empt this process. The Group Executive Board has repeatedly emphasized that our current business model no longer works for all brands in its present form.”
If VW follows through, the reported plan would far exceed the roughly 50,000 job reductions Volkswagen had already agreed to through 2030. It would also likely face fierce opposition from German labor unions, which reached an agreement with the company in late 2024 to prevent plant closures in Germany this decade.
For now, the proposals remain just that. Volkswagen’s supervisory board is expected to discuss the plans in the coming weeks, and any major restructuring would still require approval through the company’s governance process.
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