Volkswagen is weighing one of the largest restructuring programmes in its history, with plans that could eliminate up to 100,000 jobs globally and close four manufacturing plants in Germany, according to a report by Manager Magazin citing company insiders.
The reported proposal would double the automaker's previously announced target of cutting around 50,000 jobs by 2030 and comes as Europe's largest carmaker faces slowing profits, rising production costs, and growing competition in the electric vehicle market.
According to the report, Chief Executive Officer Oliver Blume has presented the restructuring strategy to Volkswagen's management board. However, the internal document reportedly avoids specifying a fixed number of job reductions, allowing flexibility as discussions continue.
Volkswagen declined to comment directly on the reported plans.
"The relevant facts of the matter will be discussed and approved by the relevant bodies. We will not pre-empt this process," a company spokesperson said in a statement. The spokesperson added that the group's existing business model of designing vehicles in Germany, manufacturing them in Europe, and exporting them globally is no longer sustainable across all of its brands as the automotive industry undergoes fundamental transformation.
The report said Volkswagen is also considering closing its production facilities in Hanover, Zwickau and Emden, along with Audi's plant in Neckarsulm. Production at those sites would reportedly end once the current vehicle models complete their life cycles.
Any large-scale workforce reduction is expected to face legal and labour challenges. Volkswagen has an employment protection agreement covering its workforce until the end of 2030, while Audi employees are protected under a similar agreement until 2033.
In addition to reducing costs, the company is reportedly evaluating structural reforms that would separate the Volkswagen passenger car brand and its components division into independent companies. Such a move could provide greater operational flexibility and create opportunities for future capital market listings.
The reported overhaul follows a difficult start to 2026 for the automaker. Volkswagen's net profit fell 28% year-on-year to €1.56 billion during the first quarter, while revenue declined 2% to €75.7 billion.
Chief Financial Officer Arno Antlitz has previously warned that the company's existing cost-cutting measures would not be sufficient to secure its long-term competitiveness. The group is also facing additional financial pressure from higher U.S. tariffs, which it estimates add around €4 billion in annual costs, and intensifying competition in China, where domestic electric vehicle manufacturers continue to gain market share.
Although Volkswagen has not confirmed the reported restructuring plans, the proposals highlight the scale of the challenges facing the German automotive giant as it seeks to adapt to changing market conditions and accelerate its transition toward a more competitive and sustainable business model.
