VW Weighs Up To 100,000 Job Cuts and Core Brand Spin-Off

Volkswagen Group is considering its most significant corporate overhaul in decades, including up to 100,000 job cuts worldwide, the closure of four German factories and a potential spin-off of its core VW brand.

Plans target deep workforce reductions. Reports indicate the automaker could eliminate as many as 100,000 positions globally as part of a sweeping cost-cutting drive. This would add to roughly 50,000 cuts already agreed in 2024. The measures follow a 44 percent drop in profits for 2025 amid intensifying competition.

CEO Oliver Blume presented the plan to the management board, according to multiple reports. A key internal document deliberately omits a specific job-cut figure to preserve flexibility during discussions. CFO Arno Antlitz had previously warned that current savings efforts were insufficient.

Four German plants face production end. The facilities reportedly in the crosshairs are Volkswagen plants in Hanover, Emden and Zwickau, plus Audi’s site in Neckarsulm. Production would cease only after current vehicle programs reach the end of their lifecycles rather than through immediate shutdowns. More than 45,000 jobs are tied to those sites, Reuters reports.

Reorganization could split core operations. Management is exploring separating the VW brand and its components business into standalone entities. The move would simplify management structures and potentially offer greater future flexibility. The entire group must undergo far-reaching change to remain competitive, a Volkswagen spokesperson told media.

Unions signal strong opposition. Germany’s IG Metall union and VW’s works council have condemned the reported proposals and pledged fierce resistance. A key supervisory board meeting is scheduled for July 9, leaving workers with an anxious wait. The group employs approximately 657,000 people worldwide, according to Euronews.

The story first appeared in Manager Magazin and was corroborated by Reuters, the Financial Times and others. Volkswagen has declined to confirm specifics, citing its internal approval processes. Pressure from Chinese rivals, tariffs and the shift to electric vehicles are cited as key drivers behind the review.