Volkswagen Group prepares to close several plants and cut up to 100,000 employees
The German concern, currently in crisis, is on the verge of a large-scale corporate reorganization. The continued operation of four plants located in Germany is in question.
Many automakers today continue to experience serious difficulties, and the Volkswagen Group is no exception. Back in the spring of 2026, it became known that VW had acknowledged its own non-viability: it was then reported that, in the opinion of the board of management and the supervisory board of the concern, its current business model is not aligned with the rapidly changing reality.
As Kolesa.ru reported earlier, the current crisis began in 2023 due to a global slowdown in demand for electric vehicles: the bet on total electrification did not pay off, including for VW. The current dire situation was also influenced by problems in the IT division Cariad: it failed to develop a new generation of an integrated operating system for models of all the concern’s brands in a timely manner, which led to delayed launches of key new products. Added to the “crisis piggy bank” was the weakening of its position in the Chinese market due to competition with strengthened local manufacturers.
Apparently, Volkswagen is now developing a strategy to emerge from the current crisis. The German publication Manager Magazine reported on what specific steps the concern’s management intends to take: at the moment, the focus is on reducing costs. Thus, it is reported that the upcoming reorganization could entail a reduction of up to 100,000 employees of the concern working worldwide. By what deadline the “thinning of the ranks” is planned remains unclear.
Earlier, Volkswagen had already announced plans to cut 50,000 jobs in Germany at the plants of its main brands – Volkswagen, Audi, Porsche, as well as in the IT division Cariad. This “staff optimization” is planned to be carried out by the end of the decade. These 50,000 employees are likely included in the plans to cut 100,000 jobs worldwide.
According to the German publication, VW’s strategy to emerge from the crisis (after a 44% drop in profit at the end of 2025 and intensified competition) involves reducing capital expenditure, a number of administrative decisions, changes in the overall organization of the concern, as well as the closure of several plants located in Germany.
It is reported that the Volkswagen production sites in Hanover, Emden, and Zwickau, as well as the Audi plant in Neckarsulm (the brand is also part of the VW Group), may completely cease vehicle production. The magazine noted that this is not about the immediate closure of the plants, but a gradual one: upon the completion of the life cycles of the models produced there.
According to rumors, the concern may also spin off the main VW brand and its component production division into separate units. It is assumed that this will simplify the company’s management structure in the future and give it more flexibility in a number of important matters. Officially, the company has not yet confirmed information about the strategy to emerge from the current crisis.
