Volkswagen is facing serious consequences from its previous production of vehicles with poor usability and software issues. Recently, we reported that CEO Oliver Blume has a plan to eliminate 50,000 jobs within the company, but the situation may worsen.
A new report indicates that Volkswagen is now contemplating the closure of four factories in Germany located in Hanover, Zwickau, Emden, and Neckarsulm, which could result in an additional 45,000 layoffs. This would bring the total number of jobs lost to nearly 100,000. For context, the workforce within the group in 2025 was approximately 667,164, with nearly 43% of employees based in Germany.
The ID. Polo should save VWIf implemented, this would mark the largest restructuring in Volkswagen's history. The company's supervisory board members are expected to deliberate on this issue during a meeting scheduled for July 9.
Moreover, Volkswagen intends to reduce its investment budget by 15%, cutting it to just over €130 billion for the next five years. Both Blume and CFO Arno Antlitz are reportedly seeking to transform the company fundamentally, potentially splitting the Volkswagen brand and its component operations into separate entities. It remains to be seen if they will focus on producing vehicles that are both desirable and affordable.
Unsurprisingly, Volkswagen's works council and Germany's IG Metall union have expressed their discontent with these developments and are prepared to oppose them. In a joint statement, they asserted: "Should such plans go ahead, we would do everything in our power to prevent them."
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