Volkswagen May Cut Up to 100,000 Jobs Amid China and U.S. Pressure

Volkswagen is weighing a sweeping restructuring that could eliminate as many as 100,000 jobs worldwide over the next few years, according to German reports. The plan is intended to make Europe’s biggest carmaker leaner and better able to compete with fast-growing Chinese automakers. The company is said to be targeting savings of 11 billion euros by 2030, with layoffs equal to about one-sixth of its global workforce.

The proposals, attributed to CEO Oliver Blume, also include splitting the business and separating the brand that bears his name. That could lead to the closure of four plants in Germany: Hannover, Zwickau, Emden, and an Audi factory in Neckarsulm. The sites produce models including the Transporter van, ID Buzz, Audi Q4, Cupra Born, and several Audi models such as the A5, A6, A8, and e-tron GT, with production to be phased out over the coming years.

Workers and the state of Lower Saxony hold 20% of the voting rights at Volkswagen, and they have already agreed to eliminate 35,000 jobs by 2030 and to close plants such as Osnabrück, which could be taken over by Israel’s Rafael. Blume is expected to present the plan to the company’s board on July 9.

Volkswagen, which owns Audi, SEAT-Cupra, Skoda, Porsche, Lamborghini, Bentley, MAN and Scania, employs about 657,000 people worldwide, roughly 40% of them in Germany. The group has lost ground in China, faces stronger competition from Chinese brands in Europe, and has been hit by U.S. tariffs under the Trump administration. It has also taken multibillion-euro write-downs on electric vehicle investments that have not yet paid off, and reported a 40% drop in net profit in 2025 to 6.9 billion euros. Separately, Volkswagen announced the sale of its marine engines unit, Everllence, to Bain Capital for 7.4 billion euros, saying the deal would help it focus on its core businesses.