Volkswagen plans up to 100,000 layoffs and 50% model reduction

Volkswagen AG announced a major restructuring programme that could cut up to 100,000 jobs worldwide. The group has already committed to 50,000 vacancies; an additional 50,000 may be eliminated to bring operating costs in line with rivals and achieve €6.5 billion of savings by 2031.

Four German plants – Emden, Hanover, Zwickau and Neckarsulm – are being examined for possible full closure, while the company also plans to shift production of Chinese‑developed electric models to its European factories. As part of the cost drive, Volkswagen intends to halve its model range, with a draft list naming the Jetta, Taos, Skoda Fabia, Porsche Taycan and several Audi variants as potential candidates for discontinuation.

The plan has triggered strong reactions from unions, the IG Metall, regional governments and the supervisory board, and analysts warn of a domino effect that could affect suppliers, logistics firms and related service sectors across Germany.