Volkswagen announced a plan to cut 100,000 jobs, roughly 15 % of its global workforce, by shutting down several German plants. The closures target Hanover, Zwickau, Emden and Audi’s Neckarsulm site, all of which have struggled with weak electric‑vehicle demand. The move marks the biggest restructuring in the automaker’s 89‑year history, aiming to lower operating costs significantly.

Earlier this year VW agreed to 50,000 layoffs after U.S. tariff pressures and rising Chinese competition, with unions securing a pact that barred further cuts until 2030. The new proposal disregards that deal, prompting the IG Metal union and the General Works Council to vow vigorous opposition, saying they will block any implementation. Union leaders warn the move could spark industrial unrest.

The plant shutdowns will strip Germany of key EV production capacity, especially at Zwickau, which recently pivoted to six electric models across VW, Audi and Cupra. With the workforce reduction looming, suppliers risk order cancellations while consumers may see fewer locally built EVs. Volkswagen’s strategy now hinges on reshaping its European footprint amid persistent demand softness, forcing tighter margins for component makers.