Volkswagen is considering eliminating up to 100,000 jobs worldwide. This would be among the largest restructurings in automotive history, reducing its global workforce of about 657,000 by 15%.
The German automaker, led by CEO Oliver Blume, is weighing the closure of four major facilities in Hanover, Zwickau, Emden, and Neckarsulm. These closures alone could impact over 45,000 positions. VW also plans to slash its five-year investment budget by 15%.
The move doubles a previous plan to cut 50,000 jobs in Germany by 2030. Pressure comes from aggressive Chinese EV competitors like BYD, the high cost of the electric transition, and the complexity of VW's global operations.
The closures have major political implications in Germany, where the auto industry is vital. For investors, the investment cuts are a double-edged sword: potentially boosting near-term cash flow while risking long-term competitiveness in EV and software development.