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Volkswagen, one of the world’s largest automakers, is preparing a sweeping restructuring that could result in up to 100,000 job losses worldwide and the closure of multiple factories.
The potential cuts would represent nearly one in six positions at the company, which currently employs about 625,000 people globally, as it grapples with fierce competition from Chinese manufacturers, declining profits, heavy investments in electric vehicles, and potential U.S. tariffs.
The plans, first reported by German business newspaper Manager Magazin, would significantly expand an existing cost-cutting program. If approved, production would halt at four major German facilities, including sites in Emden, Zwickau, and Hanover, as well as an Audi plant in Neckarsulm. The proposals are slated to be presented to the company’s supervisory board on July 9, potentially triggering intense negotiations with labor unions.
The developments follow a stark warning from Volkswagen CEO Oliver Blume. “Never has the risk situation been so high,” he told shareholders just days earlier, underscoring the gravity of the challenges facing the automaker.
While Volkswagen has not directly confirmed the latest reports, the company has acknowledged deep structural issues. “The Executive Board has repeatedly stated that our current business model no longer works across all brands: developing cars in Germany, producing them in Europe and exporting them to the world,” a company spokesperson said.
Financial pressures have mounted sharply. Although revenue held relatively steady in 2025, operating profit dropped more than 50 percent from the prior year, falling from $21.8 billion to $10.2 billion.
Net income similarly declined from $14.2 billion to $7.9 billion. China, once a key growth driver, has become a major source of concern. Vehicle deliveries in the market fell 8 percent last year, with battery-electric vehicle sales plunging more than 44 percent amid an aggressive price war led by local competitors.
The automaker has already taken steps to reduce its footprint. Last year, it announced plans to cut around 50,000 jobs in Germany by the end of the decade and slash production capacity by roughly 500,000 vehicles.
Earlier this year, it closed a small site in Dresden and is seeking a buyer for its Osnabrück factory, where operations are expected to wind down next year. The new proposals would reportedly double the scale of the earlier German job reduction targets.
Labor representatives have reacted with strong opposition. “Should such plans be pursued, we would oppose them with all our might,” workers’ representatives said in a joint statement. They criticized management for lacking a coherent long-term strategy for the iconic German industrial employer.
End Time Headlines is a ministry founded, owned, and operated by Ricky Scaparo, established in 2010 to equip believers and inform discerning individuals about the “Signs and Seasons” of the times in which we live. Ricky authors original articles and curates news from mainstream sources, carefully selecting topics, verifying information, and utilizing artificial intelligence tools to ensure content is both timely and accurate. Every piece is personally reviewed and edited by Ricky to align with the ministry’s mission of providing a prophetic perspective on current events.