Volkswagen weighs German plant closures and deeper job cuts
Manager Magazin reported that Volkswagen could close up to four German factories and expand planned job cuts as profits weaken.
By James Whitfield · Staff Writer
2 min read
Volkswagen Group is considering closing as many as four factories in Germany and cutting far more jobs than previously planned, according to Manager Magazin. The potential retrenchment would mark a sharp turn for Europe’s largest automaker as it tries to cut costs after a steep profit decline.
The German magazine reported that Chief Executive Oliver Blume plans to present a restructuring proposal to Volkswagen’s board next month. Reuters said it confirmed the report, which said the company could eliminate an additional 45,000 positions on top of the 50,000 job cuts in Germany announced in March.
If carried out, the reductions would bring total planned job losses close to 100,000 and cut Volkswagen’s overall workforce by about 15%, according to the report. Volkswagen employs more than 650,000 people across its 10 car brands and other businesses.
The factories identified in the report are Volkswagen sites in Hannover, Zwickau and Emden, along with Audi’s plant in Neckarsulm. Audi is part of the Volkswagen Group.
Plant closures in Germany would be a major break with Volkswagen’s history. The state of Lower Saxony owns a stake in the company, and powerful labor unions have long made domestic factory shutdowns difficult for management to pursue.
Volkswagen’s financial pressure has grown even as its European electric-vehicle business has performed well. Ars Technica reported that the group’s 2025 sales were broadly flat, while profit fell 44% to 6.9 billion euros, or $7.9 billion, and operating margins more than halved.
The company has also faced weaker sales in North America and China, according to Ars Technica. Tariffs have added to the strain, the report said.
Volkswagen executives have already signaled that they see the company’s cost base as too high. In April, Chief Financial Officer and Chief Operating Officer Arno Arnitz told investors that the group’s operating margin was “far too low” and said Volkswagen needed to change its business model to lower costs and improve efficiency while maintaining quality.
Arnitz said at the time that Volkswagen would need to reduce complexity across its product lineup, technology platforms, corporate entities and management layers. The factory and job-cut plans reported by Manager Magazin indicate how that effort could reach into the company’s manufacturing base.
The latest reported plan comes after Volkswagen said in March that it would cut 50,000 jobs in Germany by 2030. Manager Magazin’s report suggests management is now considering a broader overhaul as earnings pressure continues into 2026.
This story draws on original reporting from Ars Technica.