Volkswagen is weighing layoffs of up to 100,000 workers and the closure of four German factories, according to reports. Experts say this would be the most significant workforce reduction in the automaker’s history.
Citing two people familiar with the matter, Reuters reported Friday that CEO Oliver Blume presented the plans to senior executives earlier in the week. The supervisory board has been briefed, with a formal discussion scheduled for July 9.
According to CNBC, the plan would eliminate roughly 15% of Volkswagen’s global workforce of more than 660,000 employees, adding to the reductions management and unions had already agreed to in late 2024. The plants targeted for closure are in Hanover, Zwickau and Emden, as well as Audi’s facility in Neckarsulm. The sites employ more than 45,000 workers, CNBC reported, citing an original report in the German publication Manager Magazin.
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Reuters added that Blume and CFO Arno Antlitz are also planning to spin off the core VW brand and parts operations into separate entities and cut planned investment by about 15% to just over €130 billion over the next five years. The company declined to address what a spokesperson called “confidential documents” but told Reuters: “The entire group, including its brands and subsidiaries, must undergo far-reaching change.”
Reports also predict strong union resistance. Germany’s dominant metalworkers union, IG Metall, and Volkswagen’s General Works Council said in a joint statement Friday, as reported by CNBC. “If such plans were to be pushed forward, we would prevent them with all our might.” Reports indicate that workers in the VW group are covered by employment guarantees that do not expire until 2030.
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