Mass layoffs loom as this major automaker plans to cut up to 100,000 jobs

Volkswagen is evaluating the largest job cuts in its history: up to 100,000 workers could lose their jobs as part of a mass layoff plan that also includes the closure of four plants in Germany. The automaker must present the proposal to its supervisory board on July 9.

The figure would double the 50,000 layoffs the company had already announced months ago. The plants that could close their doors are those in Hanover, Zwickau, Emden and the Audi factory in Neckarsulm, according to reports in German media specialized in the automotive industry.

What does the automaker’s mass layoff plan include?

The plan seeks to completely restructure Volkswagen’s operation in Germany, amid falling sales, competition from Chinese brands and US tariffs. The company said that “the entire group, including its brands and subsidiaries, must undergo a profound change”.

However, the so-called Volkswagen Law complicates the process: the state of Lower Saxony owns 20% of the company’s voting shares, and that regulation limits management’s ability to close plants without its approval.

Plants that could close their doors:

• Hanover.
• Zwickau.
• Emden.
• Audi Neckarsulm.

How does this decision affect workers and what comes next?

The Volkswagen Works Council and the IG Metall union have already said they will strongly oppose the layoffs and the plant closures. The German government also rejected the measure and stressed that its goal is to protect jobs in the country.

The company had agreed with the unions, in late 2024, to avoid factory closures and compulsory layoffs until 2030. Now, everything will be in the hands of the supervisory board, which must approve or reject the plan at the July 9 meeting.