Volkswagen Reportedly Plans 100,000 Job Cuts, Four Plant Closures

Volkswagen is reportedly preparing the largest restructuring in its history. Volkswagen (VWAGY) is weighing up to 100,000 job cuts and the shutdown of four German plants, according to a Manager Magazin report picked up by Reuters and other outlets.

What the plan reportedly includes

The plan would see Europe’s largest automobile manufacturer shed roughly 15% of its workforce as it seeks to counter intensifying competition from Chinese car brands, in a move that would represent the most radical overhaul in the firm’s 89-year history.

Closing the plants at Hanover, Zwickau, Emden and Audi’s Neckarsulm site would put more than 45,000 jobs at risk. That would add to the 50,000 cuts agreed with unions in late 2024.

The group would also cut planned investment by about 15% to just over €130 billion over the next five years, and CEO Oliver Blume and CFO Arno Antlitz aim to fundamentally restructure the 89-year-old company, including spinning off the core VW brand and parts operations into separate entities.

Why now

The cuts aim to lower overhead by 11 billion euros by 2030 amid tariffs, China weakness and rising competition. First-quarter 2026 net profit shrank by 28% year-on-year to €1.56 billion, and revenue edged down 2% to €75.7 billion.

Antlitz has put the annual cost of U.S. tariffs at roughly €4 billion, while China — the group’s single largest market — saw first-quarter sales tumble 20% as homegrown automakers, most notably BYD, continue to erode VW’s position there.

Having been China’s top automaker for years, Volkswagen was knocked into second place by BYD in 2024 and fell to third place in 2025.

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Pushback from labor and the state

Volkswagen’s General Works Council and German industrial union IG Metall pledged to push back against the reported job cuts and plant closures, saying in a joint statement that if such plans were to be pushed forward, they would prevent them with all their might.

Pushing through job cuts at Volkswagen is difficult. Worker representatives occupy half the seats on the carmaker’s supervisory board, and the German state of Lower Saxony — which tends to side with unions — has another two seats.

Members of Volkswagen’s supervisory board have been informed of the plans, which are due to be discussed at a July 9 meeting.

Market reaction

VW’s shares were trading at 16-year lows on Friday morning, down 0.4%, suggesting investors were skeptical the plan would succeed.

Volkswagen’s streamlining efforts underscore the German industry’s broader struggles. Mercedes-Benz Group plans to discuss deeper cost cuts with labor representatives, while BMW earlier this month issued a drastic profit warning that sent its shares tumbling.

Options market and stocks to watch

Watch VWAGY for follow-through ahead of the reported July 9 supervisory board meeting, where any leaks or confirmations could move shares.

Watch BYDDY as the Chinese EV leader continues to take share from legacy OEMs in China and Europe, a trend at the core of VW’s restructuring case.

Watch MBGYY and BMWYY as peers facing similar margin pressure, with Mercedes weighing deeper cuts and BMW recently issuing a profit warning.

Watch TSLA for read-through on EV pricing and demand in Europe, where Chinese brands are expanding rapidly. More coverage on Unusual Whales news.

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