Volkswagen CEO Plans To Cut 100,000 Jobs In Major Overhaul

Volkswagen is preparing for one of the biggest restructuring plans in its history. Reports suggest CEO Oliver Blume wants to reduce the global workforce by as many as 100,000 employees over the next few years while lowering investment spending and reshaping the group’s business. The reported plan comes as the German automaker faces slower demand in China, rising competition from electric vehicle makers, higher trade pressures, and the costly shift toward electric mobility. Although the company has not confirmed the details, investors are closely watching the proposed overhaul because it could significantly change Volkswagen’s future strategy.

Volkswagen Plans Up To 100,000 Job Cuts As Restructuring Accelerates

Reports from Manager Magazin, also covered by Reuters, Investing.com, and The Star, say Volkswagen CEO Oliver Blume wants to eliminate up to 100,000 jobs worldwide over the coming years. The company currently employs around 667,164 people globally, meaning the proposed reduction could affect nearly 15% of its workforce.

The reported target is much larger than Volkswagen’s previous restructuring plan. Earlier this month, the company said it expected to cut around 19,000 jobs by the end of 2026, while more than 28,000 positions had already been targeted by 2030 under earlier agreements.

Why is Volkswagen considering deeper cuts?

The company is dealing with lower profitability, weaker vehicle demand in China, growing competition from Chinese EV makers, United States tariffs, and the heavy investment needed for electric vehicles and software development.

Volkswagen May Close Four German Plants And Reduce Investments

The reported overhaul also includes shutting production at four German facilities. The plants mentioned include Hanover, Zwickau, Emden, and Audi’s Neckarsulm facility. If approved, these would become some of Volkswagen’s biggest manufacturing changes in decades.

Investment spending could also fall sharply. Reports say Volkswagen plans to reduce planned investment by about 15%, bringing total spending to just over €130 billion during the next five years.

What is the company trying to achieve?

Management believes lower costs and leaner operations will improve long-term profitability while allowing Volkswagen to focus more on its core automotive business.

Volkswagen Faces Strong Union Resistance

The proposal is expected to face major opposition from employee representatives. Volkswagen’s 2024 labor agreement ruled out German plant closures during this decade, making the reported restructuring highly controversial.

Germany’s IG Metall union and Volkswagen’s works council have already warned they will strongly resist any attempt to expand job cuts or close factories. The reported restructuring plan is expected to be discussed by Volkswagen’s supervisory board on July 9.

What Volkswagen’s Overhaul Could Mean For Investors

For investors, Volkswagen’s reported restructuring highlights management’s willingness to take aggressive action to improve long-term profitability. Cutting operating costs, lowering capital spending, and simplifying the business could strengthen cash flow if the plan moves forward. At the same time, the proposal carries meaningful risks. Strong resistance from labor unions, uncertainty over factory closures, and ongoing pressure from Chinese automakers could delay or change the final strategy. Volkswagen has not officially confirmed the reported measures and says decisions will only be made after discussions with its governing bodies. Investors should therefore monitor the July 9 supervisory board meeting, future management announcements, and updates on vehicle demand before assessing the full financial impact of this major transformation.

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