New Delhi : Volkswagen could be preparing for the biggest restructuring in its 89-year history. The company is reportedly considering cutting up to 100,000 jobs and closing four factories because of weak demand in Europe. Volkswagen’s supervisory board has been informed about a proposal to shut factories in Hanover, Zwickau, Emden and Audi’s plant in Neckarsulm. The plans are expected to be discussed in detail at a board meeting on July 9.
If the factories are closed, more than 45,000 jobs could be lost. Along with around 50,000 job cuts that were already agreed with labour unions in late 2024, the total number of jobs eliminated could reach nearly 100,000. If this happens, it would be one of the biggest restructuring efforts ever seen in the global automobile industry.
Volkswagen is also looking at reducing its spending. Reports say the company may cut its investment by 15 percent over the next five years, lowering total spending to just over 130 billion euros. German magazine Manager Magazin first reported the plans. Chief Financial Officer Arno Antlitz also supports the restructuring plan. The company is even considering separating its main Volkswagen brand and parts business into independent companies.
Volkswagen is facing several challenges at the same time. Sales in Europe have slowed, Chinese carmakers are growing rapidly, and US tariffs have increased costs for the company. Since then, it has continued to lose market share as Chinese brands expand quickly. According to industry estimates by AlixPartners, the market share of non-Chinese carmakers in China has fallen from 57 percent in 2020 to about 32 percent in 2025. Chinese companies are also growing fast in Europe.
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