Volkswagen plans to cut 100,000 jobs worldwide and close four German plants by 2030
Volkswagen is considering cutting up to 100,000 jobs worldwide and closing four German plants, its largest-ever restructuring, as it faces Chinese competition and the costly shift to electric vehicles.
The restructuring plan
Volkswagen is considering cutting up to 100,000 jobs worldwide and closing four German plants by 2030, according to reports by Manager Magazin and the Financial Times. The plan would double the 50,000 job cuts in Germany announced in March, and reduce the group's global workforce from over 670,000 to around 550,000. Investment spending would also be cut by 15% to just over €130 billion. The supervisory board is scheduled to discuss the proposals on 9 July.
- VW announces 50,000 job cuts in Germany and €6bn annual savings target by 2030.
- Manager Magazin reports plan for 100,000 global job cuts and four plant closures.
- Supervisory board meeting to discuss restructuring proposals.
- Target year for full implementation of job cuts and savings.
Company response
Volkswagen has not confirmed the figures. A spokesperson said the company does not comment on internal documents and that any decisions would be debated in the appropriate committees. However, the group acknowledged the need for change.
The board has repeatedly stated that our current business model no longer works for all brands: developing cars in Germany, manufacturing them in Europe and exporting them to the rest of the world.
To continue to be successful under these conditions, we have to evolve. The entire Group must significantly increase its competitiveness. This requires a more precise focus, as well as stricter discipline in terms of costs and investments.
Plant closures and production impact
The four plants at risk are Volkswagen's facilities in Hannover, Zwickau and Emden, plus Audi's plant in Neckarsulm. Zwickau builds the Cupra Born and several electric models for VW and Audi. Hannover produces the ID.Buzz family and the Multivan, while Emden makes the ID.4, ID.7 and ID.7 Tourer. Neckarsulm assembles the Audi A5, A6, A7, A8 and e-tron GT. The closures would require redistributing production across remaining sites. IG Metall, the powerful German union, has a job guarantee in place until the end of 2030, meaning any workforce reduction would need to be negotiated.
Driving forces
The restructuring is driven by intense competition from Chinese manufacturers and the high cost of transitioning to electric vehicles. Volkswagen's current model of developing cars in Germany for export is under pressure. The group aims to achieve annual net savings of more than €6 billion by the end of the decade. The plan may also include separating the core Volkswagen brand and its components division into distinct structures to simplify the group and focus resources.
Next steps
CEO Oliver Blume will present the plan to the supervisory board on 9 July. If approved, negotiations with unions and works councils will follow. The company has stressed that all matters will be discussed through the proper channels.
