Volkswagen Plans Major Job Cuts and Plant Closures in Germany

Volkswagen, the auto giant that leads Europe in electric vehicle production, plans to cut 100,000 jobs or 15 percent of its global workforce at German plants over the coming years, Manager Magazin reported. The plan represents the automaker's largest overhaul in its 89-year history.

As part of the changes, Volkswagen will reportedly cease production at its Hanover, Zwickau, Emden and Audi Neckarsulm plants. Zwickau, in Saxony, was recently converted to an electric car production site for six EV models across the company's VW, Audi and Cupra brands. That plant has seen multiple production pauses due to what the company has called weak demand for EVs.

Volkswagen had previously laid out plans for 50,000 job cuts, citing Trump's tariffs and Chinese car sales at the time. Volkswagen's unions agreed to those layoffs in a deal struck in late 2024, provided that the manufacturer didn't cut jobs further or close additional plants until at least 2030.

However, VW has now escalated that significantly despite the agreement. "The entire Group — including its brands and subsidiaries — must undergo profound changes," a spokesperson told CNBC. Volkswagen declined to comment on other details from "internal, confidential documents," the spokesperson added.

The automaker's unions and representative organizations pledged to fight the reported layoffs and plant closures. "If such plans were to be pushed forward, we would prevent them with all our might," the IG Metal union and General Works Council said in a joint statement.