Volkswagen, the German automotive giant, is reportedly developing proposals for a major restructuring that would eliminate 100,000 jobs globally over the next few years—double the number previously announced. According to local media reports, top executives are considering a dramatic reduction in the workforce to achieve cost savings of €11 billion (£9.5 billion) by 2030.
Plant Reviews and Production Halts
The proposals include placing four car plants in Germany under review before potentially ending production, as reported by Manager Magazin. This would represent a massive overhaul for the 89-year-old Wolfsburg-based carmaker, which owns brands such as Audi, Bentley, Skoda, and Seat.
Escalating Cost-Cutting Measures
The new plans would involve cost-cutting on a much larger scale than previously outlined. Earlier, Volkswagen had stated that 50,000 jobs were due to be cut by 2030 across the group in Germany. At that time, chief executive Oliver Blume told shareholders that the company was on track to make savings of more than €6 billion (£5.2 billion) by 2030. “The transformation of the entire company is continuing to pick up speed,” Blume had said.
Market Challenges and Delivery Declines
The restructuring comes amid reports that vehicle deliveries dropped by 10% in the US and 8% in China in 2025. The company attributed these declines to “challenging market conditions,” including tariffs on US imports and increased competition in China, where major electric carmakers like BYD have captured significant market share. Despite these setbacks, deliveries rose by 4.5% in Europe to nearly four million vehicles.
Workforce Impact
Volkswagen reportedly has around 625,000 staff worldwide, meaning the job-cutting plans would shed approximately 16% of the total workforce if implemented. Reports indicate that details of the new plan are set to be presented to the company’s supervisory board on July 9. Volkswagen has been contacted for comment.
