Volkswagen plans up to 100,000 job cuts as German car makers restructure

The German government is working to keep Volkswagen's factories open, but the automaker is reviewing the shutdown of four German plants and a reduction of up to 100,000 jobs, a move that could affect about one‑sixth of its workforce. Union representatives and IG Metall have warned that the cuts threaten worker rights and have pledged to contest the measures.

At the same time, Germany's other major car manufacturers are announcing similar downsizing. BMW expects to cut up to 10,000 jobs and is spending about €1 billion on restructuring, while Mercedes‑Benz is also reducing its workforce and has suspended summer bonuses. The combined job reductions across the sector represent one of the largest corporate layoffs in German history and raise concerns about the broader impact on Europe’s largest economy.

Analysts note that the restructuring reflects pressure from Chinese competition, U.S. tariffs and a slowdown in European demand, and they warn that the cuts could weaken the economic backbone of the region if not managed carefully.