Volkswagen is planning a radical restructuring that could eliminate up to 100,000 jobs globally. This would double the automaker's previously announced reduction target.
According to manager magazin, CEO Oliver Blume's plan also includes shutting down four production plants. The sites slated for closure are in Hanover, Zwickau, Emden, and the Audi facility in Neckarsulm.
The overhaul extends beyond cuts. The plan would spin off the core Volkswagen brand and its components division into independent companies. This move could facilitate future stock market listings for individual brands.
The restructuring responds to a severe financial crisis. Volkswagen's first-quarter 2026 net profit dropped 28 percent. Revenue fell 2 percent.
CFO Arno Antlitz has warned current cost savings are insufficient. US tariffs are costing the group approximately four billion euros annually. Sales in China, Volkswagen's most important market, plunged 20 percent in the first quarter as Chinese competitors like BYD gain ground.