Berlin: Volkswagen is reportedly preparing a major restructuring that could include cutting up to 100,000 jobs worldwide and shutting four factories in Germany, according to German media reports.
The automaker, founded in 1937 and known for its global manufacturing footprint, is said to be responding to multiple pressures, including rising demand for electric vehicles, the impact of US taxation, and increasing competition from Chinese companies.
As part of the overhaul, Volkswagen is also reported to be planning a 15% reduction in investment over the next five years, bringing the figure down to 1,40,464 crore. Media reports further say the company may separate its vehicle components business and passenger car sales operations.
The report points to a shift in the Chinese market, where Volkswagen’s strong position has weakened since 2024 as BYD’s sales surged. By 2025, Volkswagen is said to have slipped to third place in China, while Chinese brands are also gaining ground in Europe.
Volkswagen has not confirmed the reported measures. Meanwhile, German trade unions have announced they will launch a full-scale fight against any move to close plants or reduce jobs.
