Key facts
- Volkswagen is reportedly planning to cut up to 100,000 jobs worldwide.
- Four German plants, including sites in Hanover, Zwickau, Emden, and Audi's Neckarsulm, are reportedly facing closure.
- The restructuring aims to address declining profits, falling revenue, and increased competition, particularly from Chinese manufacturers.
- The company's net profit fell 28% in Q1 2026, with revenue down 2%.
Volkswagen is reportedly preparing for a significant restructuring, with plans to cut up to 100,000 jobs worldwide and potentially close four German production sites. The move, reportedly spearheaded by CEO Oliver Blume, aims to address a deep-seated structural crisis within the automaker.
According to reports citing insiders, the job cuts would double previous targets. The affected plants are said to be Volkswagen's sites in Hanover, Zwickau, and Emden, along with the Audi plant in Neckarsulm, with manufacturing potentially ceasing once current models are phased out. The company is also planning to carve out the core Volkswagen brand and its components division into independent companies.
These measures follow a significant profit slump in the first quarter of 2026, where net profit fell 28% to 1.56 billion euros on revenue of 75.7 billion euros, a 2% decrease. CFO Arno Antlitz has warned that existing cost-cutting measures are insufficient and that the company risks its future if further action is not taken. US tariffs cost the group around 4 billion euros annually, and sales in China dropped 20% in the first quarter, attributed partly to the competitiveness of Chinese manufacturers like BYD.
Enforcing such extensive job cuts faces legal challenges, as Volkswagen has a job guarantee until the end of 2030, and Audi until the end of 2033, under labor and collective bargaining laws.