Volkswagen Considering Up to 100,000 Layoffs and Closure of Four More Factories

There have been local reports that the German automaker Volkswagen Group is considering a large-scale restructuring plan that includes laying off up to 100,000 employees and closing four additional factories.

Associated Press Yonhap News Agency

On June 26 (local time), German business media outlet Manager Magazin reported, citing sources, that Volkswagen Group is pushing to reduce its global workforce by 100,000 jobs over the next few years from the current level of 657,000 positions worldwide.

The restructuring plan reportedly includes shutting down Volkswagen plants in Hanover, Zwickau, and Emden, as well as the Audi plant in Neckarsulm.

Oliver Blume, CEO of Volkswagen Group, is said to have presented this plan ahead of a board meeting scheduled for early next month. Volkswagen stated, "We do not comment on internal confidential documents," but acknowledged, "It is true that both the entire automotive industry and Volkswagen Group are going through a very fundamental period of transition."

Volkswagen entered emergency management in 2024 as it faced sluggish sales in its largest market, China, and encountered difficulties in the transition to electric vehicles. At the time, the company drew up plans to cut 35,000 jobs in Germany by 2030 and to halt assembly operations at its Osnabrück and Dresden plants.

More recently, Volkswagen set a group-wide layoff target of 50,000 positions, with 28,000 employees already confirmed to be leaving. Manager Magazin assessed that this new layoff plan is unprecedented, as it is twice the scale of the previous target.

Labor unions and politicians have strongly opposed the plan. IG Metall (Metalworkers' Union) declared, "If such a plan is pursued, we will do everything in our power to stop it."

Adis Ahmetovic, a member of the Social Democratic Party (SPD), also criticized, "It seems that Volkswagen's management now seeks to make its presence felt mainly through layoff announcements," adding, "If the reports are true, this is a direct attack and a clear provocation."

This content was produced with the assistance of AI translation services.