Volkswagen’s reported “Future Plan” could cut 100,000 jobs: half its models may go

Volkswagen is reportedly putting together a “Future Plan” overhaul that could bring job cuts, plant closures, and a much leaner model lineup over the next decade. The numbers being floated are big: as many as 100,000 jobs, roughly 15% of Volkswagen’s workforce, could disappear, up from an earlier 50,000-job target.

Reports also say the Volkswagen brand may cut its model range in half, slash options by 75%, and shrink production capacity from 12 million vehicles before the pandemic to about 9 million.

That push makes sense when you look at the pressure it’s under: a 3.3% operating margin in the first quarter, high costs in Germany, soft demand, Chinese EV competitors that are ahead on both price and software, and declining sales in China. Put all that together and it’s not hard to see why Volkswagen wants fewer vehicles, fewer variants, and a smaller manufacturing footprint.

And the factory piece is where this gets serious. Reports say Volkswagen is considering shutting its Zwickau, Emden, and Hanover plants, along with Audi’s Neckarsulm factory, by 2034, a move that would affect about 40,000 workers.

The same reports point to production moving in part to Eastern Europe, and to Volkswagen ending ID.4 production in Chattanooga so it can focus on higher-demand combustion SUVs. That says a lot about where the market is right now: heavy EV spending running straight into uneven demand and the need to protect short-term profits.

For now, though, this is still only a reported plan. And any deep cuts in Germany would still have to make it past IG Metall, worker representatives, Volkswagen’s supervisory board, and the state of Lower Saxony.