Volkswagen is facing significant challenges as a result of its earlier decisions involving expensive models with poor usability. Recently, we reported that CEO Oliver Blume proposed a plan to eliminate 50,000 jobs within the company, but new developments indicate the situation may be even more dire.
According to a recent report, Volkswagen is now contemplating the closure of four factories in Germany—located in Hanover, Zwickau, Emden, and Neckarsulm. This could lead to an additional 45,000 layoffs, bringing the potential total to nearly 100,000. For context, the company's total workforce was 667,164 in 2025, with nearly 43% of employees based in Germany.
The ID. Polo should save VWIf this plan is implemented, it would represent the largest restructuring in Volkswagen's history. Members of the company's supervisory board are scheduled to discuss this issue during a meeting on July 9.
In addition to workforce reductions, Volkswagen intends to reduce its investment budget by 15%, totaling just over €130 billion for the next five years. Blume and CFO Arno Antlitz aim to fundamentally transform the organization, potentially spinning off the VW brand and its parts operations into independent entities. There are hopes that this transformation will lead to the production of desirable and affordable vehicles, but time will tell.
Predictably, Volkswagen's works council and Germany's IG Metall union have expressed their discontent with these developments, committing to opposing the plans. In a joint statement, they asserted, "Should such plans proceed, we will do everything in our power to prevent them."
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