Volkswagen AG (VWAGY) is reportedly weighing one of the most dramatic restructuring plans in its history, with potential cuts of up to 100,000 jobs across its operations.
The German automaker is also considering shutting down several of its factories as part of the sweeping cost-reduction effort, according to Manager Magazin.
CEO Oliver Blume is driving the initiative, with the core goal of improving Volkswagen’s long-term competitiveness in an increasingly challenging global auto market.
Manager Magazin cited people familiar with the matter in reporting the scale of the proposed cuts, which would represent a significant reduction in the company’s global workforce.
The breadth of the plan signals that Volkswagen’s leadership believes incremental measures are no longer sufficient to address the structural pressures facing the business.
Volkswagen has been grappling with rising production costs, slowing demand in key markets, and intensifying competition from electric vehicle manufacturers, particularly from China.
Factory closures would mark a significant departure for a company that has long resisted shutting down domestic German production sites due to labour agreements and political sensitivities.
The scale of the reported job cuts would place this among the largest workforce reductions ever considered by a major European industrial employer.
Blume, who has been leading Volkswagen through a turbulent period of transition, has made improving operational efficiency a central pillar of his leadership strategy.
Volkswagen has faced mounting pressure from investors and analysts to take more decisive action on costs as its profit margins have come under sustained pressure in recent quarters.
The reported plan has not yet been officially confirmed by the company, and the final scope of any restructuring could change as internal discussions continue.
Any large-scale layoffs and factory closures would likely trigger significant negotiations with Volkswagen’s powerful works council and German trade unions, which have historically pushed back against major workforce reductions.
The outcome of those negotiations could substantially shape the final form of the restructuring, as labour representatives hold considerable influence over strategic decisions at the company.
