27.06.2026 12:06
According to a report in the German press, Volkswagen is preparing one of the largest restructuring plans in the company's history. The plan envisions the layoff of over 100,000 employees and the closure of 4 factories. It is also noted that significant changes to the company's organizational structure are being considered.
The German automotive giant Volkswagen is reportedly preparing for the most comprehensive restructuring process in the company's history. According to claims, the company plans to part ways with more than 100,000 employees and close four of its factories.
MORE THAN 100,000 PEOPLE COULD BE LAID OFF
According to a report by Manager Magazin citing internal sources, Volkswagen CEO Oliver Blume presented a restructuring plan to the board of directors that envisions laying off more than 100,000 employees.
The company, which has approximately 657,000 employees worldwide, had previously announced it would reduce its workforce by 50,000 by 2030. It was stated that the new plan could exceed twice that number.
PRODUCTION WILL STOP AT FOUR FACTORIES
According to the report, Volkswagen's factories in Hanover, Zwickau, and Emden, as well as Audi's factory in Neckarsulm in the German state of Baden-Württemberg, are planned to cease production in the medium term.
According to the draft plan, once the current models produced at these facilities reach the end of their production life, the factories will be completely closed.
ORGANIZATIONAL STRUCTURE MAY ALSO CHANGE
According to claims, the restructuring will not be limited to layoffs. The separation of the Volkswagen brand and the parts production unit from the group to become independent companies is also being considered. This could pave the way for these units to be publicly offered or to obtain financing from capital markets in the future.
On the other hand, how the plan will be implemented remains uncertain, due to the job security agreement covering employees at Volkswagen being in effect until the end of 2030, and at Audi until the end of 2033.