Volkswagen is reportedly considering a major restructuring that could lead to as many as 100,000 job cuts worldwide over the coming years.
The German carmaker may also reduce its planned investment budget by around 15%, according to a report published by German business magazine Manager Magazin.
Volkswagen Could Cut Up to 100,000 Jobs
Volkswagen CEO Oliver Blume is reportedly preparing to reduce the company’s global workforce by up to 100,000 positions.
The proposed job cuts would form part of a broader plan to lower costs and simplify the group’s operations. Manager Magazin cited people familiar with the matter.
Volkswagen employed more than 680,000 people worldwide at the end of 2025. Therefore, the reported cuts would represent a significant reduction in the company’s global workforce.
Investment Spending May Fall to €130 Billion
Volkswagen is also considering a reduction of around 15% in its investment programme.
Under the reported plan, spending over the next several years would fall to slightly more than €130 billion.
The lower budget could affect Volkswagen’s investments in electric vehicles, software, factories and other technologies as the company works to improve profitability.
Volkswagen Plans Major Corporate Restructuring
Blume and Chief Financial Officer Arno Antlitz reportedly want to completely restructure the automotive group.
One of the most significant proposals involves separating Volkswagen’s main passenger-car brand from the wider group structure.
The company’s parts-manufacturing operations could also become a separate business entity.
Such a move would give Volkswagen’s core brand and components division greater operational independence. It could also make their financial performance easier to assess.
German Volkswagen Factories Could Close
Volkswagen is reportedly considering the closure of several production facilities in Germany over the medium term.
The factories potentially affected are located in Hanover, Zwickau and Emden. An Audi plant in Neckarsulm could also be included in the restructuring programme.
According to the report, production would continue at these sites until the models currently manufactured there reach the end of their planned life cycles.
Operations would then gradually be reduced rather than ending immediately.
Volkswagen Shares Edge Higher
Volkswagen shares rose by approximately 0.6% in early German trading following the report.
The modest increase suggests that investors may view the potential cost reductions positively. However, the scale of the reported job cuts and factory closures could create significant political and labour opposition.
Overall, the proposals would represent one of the largest restructuring programmes in Volkswagen’s history. The company has not yet confirmed the reported plans.
