Volkswagen Considers Factory Closures and Job Cuts Amid Changes

WHO:

CNN - Volkswagen, one of the world’s largest automakers.

CNN - IG Metall and Volkswagen’s General Works Council, labor unions in Germany.

WHAT:

CNN - Volkswagen is reportedly planning to cut as many as 100,000 jobs, representing 15% of its global workforce.

CNN - The company plans to close four factories in Germany.

CNN - Volkswagen is planning a 15% reduction in investment over the next five years.

CNN - Volkswagen had already announced plans to slash 50,000 jobs in Germany by 2030.

CNN - Shares of Volkswagen were down 1.5% early afternoon local time and have dropped by more than a quarter so far this year.

WHERE:

CNN - Volkswagen is based in Germany and operates several factories there.

WHEN:

CNN - The job cuts and factory closures are planned to occur over the next few years.

WHY:

CNN - Volkswagen is restructuring due to falling sales in the US and China, and the need to adapt to the rise of Chinese electric vehicle manufacturers.

CNN - A Volkswagen spokesperson stated that the company requires “sharper focus as well as stricter discipline over costs and investment” to meet its new reality.

HOW:

CNN - Volkswagen plans to spin off its main Volkswagen brand and auto parts business into separate entities.

(UPDATED June 26, 2026 17:35 UTC)

Volkswagen, one of the world’s largest automakers, is reportedly planning to cut as many as 100,000 jobs, which represents 15% of its global workforce, and will also close four factories in Germany. The company is restructuring due to falling sales in the US and China, as well as the need to adapt to the rise of Chinese electric vehicle manufacturers, and a spokesperson emphasized the need for a sharper focus and stricter discipline over costs and investment. Additionally, Volkswagen plans to spin off its main brand and auto parts business into separate entities while reducing investment by 15% over the next five years.