Volkswagen reportedly plans 100,000 job cuts and possible factory closures in Germany

Volkswagen is reportedly preparing the biggest restructuring in its history, with plans that could eliminate up to 100,000 jobs worldwide, close four production plants in Germany, and sharply reduce investment over the next five years. The report appeared Friday in the German business magazine Manager Magazin.

The proposed cuts are intended to address falling profitability, intensifying competition from Chinese carmakers, and the rapid shift to electric vehicles. Among the sites under review for closure are factories in Hanover, Zwickau, and Emden, as well as an Audi plant in Neckarsulm.

Alongside the plant closures, the company is considering major investment reductions and additional efficiency measures as part of its strategy for the coming years. Volkswagen management has not yet approved the plan and said any decision would first go through the board and the supervisory board.

Company officials acknowledged that the auto industry is undergoing a deep structural change and that the current operating model is not sustainable for all brands in the group in its present form. The plan is expected to be a central issue at Volkswagen's supervisory board meeting next month and is likely to face strong opposition from worker councils and the IG Metall union, which has already said it would oppose factory closures in Germany.