Volkswagen Group is weighing one of the biggest restructuring plans in its history, with Chief Executive Oliver Blume reportedly considering up to 100,000 job cuts, the closure of four manufacturing plants in Germany, and a sharp reduction in planned investments, according to reports.
The proposed restructuring, which is awaiting board approval, includes a 15% cut in Volkswagen’s planned investments, bringing its capital spending to just over €130 billion over the next five years, Manager Magazin reported.
Volkswagen is considering separating its core VW passenger car brand and parts business into standalone entities as part of a broader effort to streamline operations. The proposed overhaul comes as Volkswagen faces mounting pressure from US tariffs, fierce competition from Chinese electric vehicle manufacturers, and rising costs linked to its shift toward electric mobility, according to the report.
Blume has repeatedly stressed the need to sharpen the group’s focus on its core automotive business and improve profitability, Reuters reported. Production could eventually cease at Volkswagen’s Hanover, Zwickau and Emden plants, as well as Audi’s Neckarsulm facility, after current vehicle programmes end.
The proposed measures would go beyond the company’s existing plan to cut 50,000 jobs and could affect nearly 15% of Volkswagen’s global workforce. Volkswagen declined to comment on the reported internal plans but said the entire group must undergo “far-reaching change”, according to the report.
The company’s works council and IG Metall union vowed to strongly oppose any attempt to close plants or implement deeper job cuts, it added.
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