VW plans to cut up to 100,000 jobs and shut plants, report says

Volkswagen is reportedly preparing a much deeper restructuring than previously understood, with plans that could cut up to 100,000 jobs worldwide and stop production at several German plants.

The reports, published on June 26, say the scale under discussion would go far beyond Volkswagen’s earlier target of reducing 50,000 jobs in Germany by 2030. They also suggest the group could trim German production capacity by about 500,000 vehicles.

VW has not confirmed the figures. The company said it would not pre-empt internal decisions and has stressed that the automotive industry is going through a profound transformation that requires the whole group to become more efficient and competitive.

Labor leaders, including IG Metall and VW works council representatives, said they would oppose the plan if management pushes ahead.

Reported scope

Financial Times reporting said Volkswagen is considering cutting up to 100,000 jobs worldwide as part of a broader cost-cutting drive. Other reports from The Guardian, El País and The Wall Street Journal described the same basic outline on the same day.

The reported proposal would more than double the earlier restructuring target already on the table. That existing plan called for 50,000 job reductions in Germany by 2030.

The reports also point to production stoppages at four German sites: Hanover, Zwickau, Emden and Audi’s Neckarsulm plant.

Those locations matter because they are deeply tied to Volkswagen’s industrial base in Germany. Any closure or prolonged stoppage would have major consequences for regional employment and local suppliers.

The reporting says the wider restructuring could also reduce German output by about 500,000 vehicles, underscoring that the proposal is not only about payroll costs but also about footprint and capacity.

Volkswagen’s response

Volkswagen has so far declined to confirm the numbers. A spokesperson said the group would not comment on confidential internal documents and would not pre-empt the process.

The company has separately said its business model no longer works across all brands as it once did, reflecting the changed market environment facing the carmaker.

Volkswagen employs more than 650,000 people globally across brands including Audi, Skoda, Seat and Cupra, so even a partial reshaping of the group would be significant.

Labor fight ahead

The reported plans have already triggered a sharp response from labor. IG Metall and VW works council representatives said workers would resist the plan if management tries to force it through.

That reaction matters because Germany’s co-determination system gives workers and unions real leverage in large industrial restructurings. Even if management wants to move quickly, the process is likely to be heavily contested.

The proposal also raises sensitive questions for Lower Saxony and other regions where Volkswagen sites are major employers and political issues as well as industrial ones.

What happens next

According to the reports, the restructuring is expected to come before Volkswagen’s supervisory board on July 9, 2026. That meeting is likely to be the first major test of how far management is prepared to push the overhaul.

Several questions remain open. It is not clear whether Volkswagen will formally table the full 100,000-job figure, whether the company is planning outright closures or only production stoppages and repurposing, or how much of any reduction would come through voluntary departures or attrition.

The plan also lands as Volkswagen faces pressure from Chinese competition, US tariffs, stagnating or declining markets and the cost of the electric-vehicle transition.

For now, the restructuring remains a report rather than a confirmed corporate decision. But the scale described in the reporting would make it one of the largest workforce and capacity reductions in the European auto industry in years.