German automaker Volkswagen is considering large-scale staff cuts—up to 100 thousand jobs worldwide, representing approximately 15% of the company's current workforce of 657 thousand according to Manager Magazin.

The group's CEO, Oliver Blume, also intends to effectively close four German plants and spin off the VW brand into a separate company. In the medium term, plants in Hanover, Zwickau, Emden, and the Audi subsidiary's plant in Neckarsulm are at risk of closure.

The manufacturer previously announced its intention to cut 50 thousand jobs by 2030—thus, the new restructuring program envisions a doubling of the number of layoffs. Blume also announced its intention to reduce investments by approximately 15%, to €130 billion, over the next five years.

In addition, Volkswagen plans to reduce its global annual production volume to 9 million vehicles to avoid overproduction.

The concern is experiencing serious difficulties in key markets: sales in China fell by 64% in the first quarter of 2026, and net profit for the quarter decreased by 28% compared to the same period in 2025. Blume himself described the concern's situation as "tense and complex" at the annual shareholders' meeting.

If these announced plans are implemented, it could be one of the largest corporate layoffs in the history of the global auto industry. Volkswagen has found itself in a trap typical of European automakers: traditional sales models are losing ground under pressure from competitively priced Chinese electric vehicles, while retooling production for electric propulsion requires colossal investments. The outcome depends largely on whether the company can stabilize its financial performance before the restructuring costs become unaffordable.