Worrying Report Claims Volkswagen Will Slash 100,000 Jobs

Volkswagen has already announced plans to eliminate 50,000 jobs in Germany across the core VW brand, Audi, Porsche, and its software subsidiary, CARIAD, by the end of the decade. However, according to a new report, the cost-cutting plan is far more drastic. The number of layoffs could double to 100,000, although it’s unclear whether all the cuts would occur by 2030 or continue into the next decade. VW has job security agreements in place until 2030, while Audi’s remain in effect through the end of 2033.

As if that weren’t bad enough, the report published by Manager Magazin alleges VW plans to shutter no fewer than four factories: Zwickau, Emden, Hanover, and Neckarsulm. The company would reportedly close the plants once production of their current models ends. The Zwickau site builds the ID.3, ID.4, and the likely-to-be-discontinued ID.5 for Volkswagen, along with the Audi Q4 E-Tron, Q4 Sportback E-Tron, and the Cupra Born.

The Emden facility assembles the ID.4, ID.7, and ID.7 Tourer. Meanwhile, the Hanover factory builds commercial vehicles such as the Transporter/Caravelle, ID. Buzz, and the Multivan/California. Neckarsulm is Audi’s production site for the A5, A6, A8, and E-Tron GT. The flagship sedan will go out of production this year, but the luxury automaker has promised a new A8-replacing flagship later this decade.

Manager Magazin also alleges that VW is planning a major structural overhaul. The core brand and the components subsidiary would reportedly be spun off into separate companies, independent of the broader VW Group. The move would pave the way for the newly formed companies to be individually listed on the stock market.

Predictably, a spokesperson refused to comment on the report. However, the fact that VW didn’t flatly deny the claims suggests there may be some truth to them. Manager Magazin is a respected German business publication and likely has reliable sources familiar with the changes reportedly brewing within the VW Group. As the saying goes, there’s no smoke without fire.

Motor1’s Take: Eliminating 100,000 jobs from an automotive giant that employs roughly 657,000 people underscores the scale of the transformation the VW Group appears ready to undertake. Closing four factories would follow the shutdown of the Dresden site, which once built the Phaeton and later the ID.3, as well as Audi’s Brussels factory, where the Q8 E-Tron and Q8 Sportback E-Tron were produced.

On top of that, VW is moving Golf production out of Germany by relocating assembly of its most iconic model from Wolfsburg to Puebla, Mexico, starting in 2027. Through these sweeping changes, the company hopes to become more competitive as Chinese automakers continue to gain ground globally, particularly in the EV segment.