Volkswagen is considering dismissing up to 100,000 jobs and shutting four manufacturing plants in Germany as part of a major restructuring plan aimed at overhauling the automaker’s operations, Manager Magazin reported on Friday, June 26, 2026.
The proposed changes, which could mark the biggest transformation in Volkswagen’s 89-year history, also include reducing planned investments by about 15% to just over €130 billion ($148 billion) over the next five years.
According to the report, Chief Executive Officer Oliver Blume and Chief Financial Officer Arno Antlitz are driving the restructuring, which would involve separating the core Volkswagen passenger car brand and its components division into independent entities.
The move comes as Volkswagen seeks to improve profitability amid pressure from United States tariffs, fierce competition from Chinese automakers and the expensive transition to electric vehicles.
Blume has previously pledged to streamline the company’s operations and concentrate on its core automotive business.
Manager Magazin said the medium-term plan calls for production to end at Volkswagen’s plants in Hanover, Zwickau and Emden, along with Audi’s factory in Neckarsulm, after the current vehicle models reach the end of their production cycles.
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The proposals would exceed the company’s existing programme to cut 50,000 jobs and come despite a labour agreement reached in 2024 that ruled out factory closures in Germany before the end of the decade.
Responding to the report, a Volkswagen spokesperson declined to comment on confidential internal documents but said strategic decisions would be considered through the company’s governing bodies.
“The entire group, including its brands and subsidiaries, must undergo far-reaching change,” the spokesperson said.
Volkswagen employed 667,164 people globally in the 2025 financial year, with nearly 43% of its workforce based in Germany. The reported cuts would therefore affect around 15% of the company’s total employees.
The magazine said the proposals form part of Blume’s “Group Target Picture 2030” strategy, which has already been presented to the executive board and is expected to go before the supervisory board on July 9.
