Volkswagen To Layoff 100,000 Employees, About 15% Of Its Workforce

Auto giant Volkswagen will lay off 100,000 employees, as per reports. The company is also closing four of its plants in Germany over the coming years.

The move could be the biggest overhaul in the automaker's 89-year history, CNBC reported. The reductions in the workforce come as Volkswagen faces increasing competition from Chinese auto companies.

The layoffs were first reported by German outlet Manager Magazin on Friday. Volkswagen's planned layoffs will cut around 15% of the company's workforce.

Volkswagen will end production at its plants in Hanover, Zwickau and Emden, alongside Audi's Neckarsulm site. It will also reduce planned investment by about 15% over the next five years to $148.2 billion.

Closure of the plants at Hanover, Zwickau, Emden and Neckarsulm would put over 45,000 jobs at risk, as per Reuters. The figure adds to the 50,000 cuts agreed in late 2024 with unions.

Volkswagen had a global workforce of 667,164 in its 2025 financial year, with almost 43% of the workforce in Germany.

The cuts are likely to be under tough negotiations with unions. Strong opposition is also expected from the state of Lower Saxony, which is the company's second-largest shareholder.

If completed, the firings would supersede the 74,000 jobs eliminated by General Motors following a restructuring in the 1990s as well as IBM's 60,000 job cull in 1993, as per the Financial Times.

A spokesperson for the company declined to comment on "confidential documents", as per Reuters. "The entire group, including its brands and subsidiaries, must undergo far-reaching change," the spokesperson explained.

The job cuts come soon after Volkswagen sold Everllence, its marine engines unit, to US private equity firm Bain.

Oliver Blume, who became ⁠Volkswagen's CEO almost four years ago, had presented the job cut plans to senior executives earlier this week. The plans will be discussed at a meeting on July 9. Blume has tried to streamline the company and focus on its automotive business as it comes under pressure.

Volkswagen is facing tariffs, growing competition from Chinese automakers and a costly shift to electric vehicles. Once China's top automaker for years, ⁠Volkswagen fell to the third spot in 2025, far behind local firms.
Chinese automakers have also closed in on Europe, Volkswagen's home ground, with BYD, Leapmotor, SAIC and Chery doubling their combined European market share through May compared to a year ago .