by Volkswagen, which has been actively cutting costs in recent years, is preparing for an unprecedented restructuring. According to German media, the automaker is considering massive changes that could affect up to 100,000 jobs worldwide.
Key points of possible changes
Previous cost-cutting efforts may seem minor against the backdrop of new plans. Management is reportedly considering not only personnel cuts but also plant closures, reduced investments, massive administrative cuts, and even a change in the structure of the entire Volkswagen Group. If these plans are implemented, it will be one of the largest reorganizations in the company’s history.
The story first appeared in Manager Magazin and was later picked up by other publications, including Reuters. According to these reports, CEO Oliver Blume and CFO Arno Antlitz are considering tough measures to make the company more efficient after a 44% profit drop in 2025 and intensifying competition.
Four plants under threat
One of the most striking claims is the possibility that four German plants could completely cease vehicle production. Under pressure, according to reports, are Volkswagen’s plants in Hanover, Emden, and Zwickau, as well as the Audi plant in Neckarsulm. Instead of immediate closure, production is likely to stop after the end of the current programs’ lifecycle.
This alone could put tens of thousands of jobs at risk. Reuters reports that more than 45,000 positions are associated with these plants. These potential cuts would add to the workforce reductions already underway under previous cost-saving initiatives.
VW brand may become independent
The proposed restructuring, according to rumors, is not limited to production. Management is also exploring a reorganization that could separate the core VW brand and its component manufacturing business into separate legal entities. Such a move could simplify management structures and potentially give the company greater flexibility in the future.
Volkswagen has not confirmed any of these details. A company representative told media that discussions are taking place through appropriate management channels and said that “the entire group… must undergo far-reaching changes” to remain competitive.
the entire group… must undergo far-reaching changes
Unsurprisingly, labor representatives are not thrilled with the news. German union IG Metall and the VW works council have criticized the proposed plans and warned that they will fight against any attempts to implement them. With a key supervisory board meeting scheduled for July 9, VW employees face anxious weeks ahead before they learn how true these stories are.
These events are unfolding against a backdrop of a significant decline in the company’s profitability, which fell by 44% in 2025. Competition in the global market, especially from Chinese electric vehicle manufacturers, is forcing the German giant to seek radical ways to increase efficiency. The decisions made in the coming months will determine not only the future of tens of thousands of workers but also the strategic direction of the entire group for the next decades. The confrontation between management and unions promises to be tense, as at stake are not only jobs but also the very structure of one of the world’s largest automakers.
