Volkswagen is advancing a sweeping restructuring program that could eliminate up to 100,000 jobs globally and close four production facilities in Germany.
The scale of the proposed cuts represents one of the most aggressive industrial restructurings in European history, signaling a fundamental shift in the automaker’s strategy amid intensifying global competition and margin pressure.
The plan, attributed to CEO Oliver Blume, aims to streamline operations and reduce the company’s cost base significantly.
Reports indicate that the closures would affect key German manufacturing sites, a move that is likely to trigger intense negotiations with labor unions and political pushback from the German government, which has historically protected domestic auto production.
This development follows earlier reports suggesting Volkswagen was preparing for major operational changes.
The company faces mounting challenges from Chinese electric vehicle manufacturers and shifting consumer preferences, necessitating a rapid transformation of its traditional internal combustion engine-heavy portfolio.