Volkswagen Considers Cutting 100,000 Jobs Amid Factory Closures in Germany

Volkswagen is reportedly discussing an unprecedented restructuring plan that could lead to the dismissal of 100,000 employees and the closure of several factories in Germany. The talks come amid widespread protests by workers outside the company’s Wolfsburg headquarters, where around 400 employees demonstrated with whistles, red flags, and signs reading "Strong Together." IG Metall, the workers’ union, emphasized its opposition to layoffs, with a union representative and Volkswagen board deputy chair stating, "This is a clear message to management, not on our watch. In difficult times, we demand protection from unfair competition."

A Volkswagen spokesperson acknowledged the workers’ concerns but stressed the need to reduce complexity, focus on technology, and cut excess production capacity. According to reports, the restructuring plan could include shutting down plants in Hanover, Emden, and Zwickau, as well as the Audi factory in Neckarsulm. "Der Spiegel" magazine noted that production at Zwickau and Emden is expected to wind down gradually over five years, with the Hanover commercial vehicle plant closing in 2032 and the Audi plant in 2034.

Current data indicates that Volkswagen’s German factories will operate at only 81% of their standard capacity in 2026, dropping to 73% by the decade’s end. This marks a reversal from a 2024 agreement brokered by CEO Oliver Blume, which secured a commitment from management to avoid factory closures in Germany. That agreement had led Volkswagen to seek alternative uses for underutilized sites, including partnerships with the defense sector. However, the company now appears compelled by economic realities to reconsider those promises.