Volkswagen is preparing a sweeping restructuring that could eliminate up to 100,000 jobs worldwide over the next several years and eventually end production at four German plants, according to a report by Manager Magazin.
Get today's headlines by email 
The report said Volkswagen Chief Executive Oliver Blume plans to significantly reduce the group's workforce while cutting investment by around 15% over the next five years. Capital spending would fall to just over €130 billion (US$148 billion), reflecting the company's drive to lower costs as it faces mounting competitive pressures.
A Volkswagen spokesperson declined to comment on what the company described as confidential documents.
"The relevant facts of the matter will be discussed and approved by the relevant bodies. We will not pre-empt this process," the spokesperson said in an emailed statement.
The spokesperson added that the entire Volkswagen Group, including its brands and subsidiaries, must undergo "far-reaching change."
Major Restructuring Plans
According to Manager Magazin, Blume and Chief Financial Officer Arno Antlitz are planning a fundamental overhaul of the company.
The magazine, citing sources, reported that Volkswagen's core VW brand and its parts-manufacturing operations would be separated from the current group structure and reorganised into standalone entities.
The restructuring would also involve a gradual shutdown of production at four German factories. The report said vehicle manufacturing would end at Volkswagen's plants in Hanover, Zwickau and Emden, as well as Audi's facility in Neckarsulm, once the models currently built there reach the end of their production cycles.
Cost-Cutting Drive Intensifies
Blume has previously pledged to deepen Volkswagen's cost-cutting efforts beyond the 50,000 job reductions already under way.
Although Volkswagen reached an agreement with labour unions in 2024 that ruled out plant closures in Germany during the current decade, under-utilised factories have remained under scrutiny as the company seeks to improve efficiency.
Industry Under Pressure
Volkswagen, along with other European automakers, is grappling with a combination of challenges, including tariffs, growing competition from Chinese manufacturers and the costly transition to electric vehicles.
The reported restructuring plans underscore the scale of the changes facing Europe's largest carmaker as it attempts to strengthen its competitiveness in a rapidly evolving global automotive market.
Join the discussion? 
Already a member? 
Adapted by ASEAN Now. Source 26 June 2026