Volkswagen plans to cut 15% of its workforce and close four German plants, report says
Published Fri, Jun 26 20267:27 AM EDT
- Key Points
- Auto giant Volkswagen is reportedly planning to cut 100,000 jobs and end production at four German plants over the coming years.
- It represents the most radical overhaul in the firm’s 89-year history.
- A Volkswagen spokesperson declined to comment on “internal, confidential documents” when contacted by CNBC.
Auto giant
Volkswagen is planning to cut 100,000 jobs and end production at four German plants over the coming years, according to a
report from Manager Magazin, in a move that would represent the most radical overhaul in the firm’s 89-year history.
The plan, reported on Friday, would see Europe’s largest automobile manufacturer shed roughly 15% of its workforce as it seeks to
counter intensifying competition from Chinese car brands.
It would also see the Wolfsburg-headquartered company reduce planned investment in the company by about 15% to just over 130 billion euros ($148.2 billion) over the next five years and cease production at plants in Hanover, Zwickau, Emden, alongside Audi’s Neckarsulm site.
Volkswagen had already laid out plans to implement sweeping job cuts and launched a major product offensive as it seeks to boost profitability.
The figures cited by Manager Magazin, however, represent a stark acceleration of those planned job cuts, given that around 50,000 jobs had been expected across the company in Germany by 2030.
Volkswagen agreed a deal with unions in late 2024 to avoid factory closures in Germany and rule out compulsory redundancies until the end of 2030.
A spokesperson for the company declined to comment on “internal, confidential documents” when contacted by CNBC, saying decisions would be taken and approved by the relevant governing bodies, according to a Google translation.
“The entire Group—including its brands and subsidiaries—must undergo profound change,” the spokesperson said.
Shares of Volkswagen were last seen trading 0.2% lower on Friday. The stock price has fallen more than 25% year-to-date.
