Volkswagen is preparing a sweeping restructuring plan that could become the largest overhaul in the company's history, with up to 100,000 jobs worldwide being eliminated, while four manufacturing plants in Germany may eventually be shut down, Euronews reports, citing sources.


Manager Magazin, citing sources familiar with the matter, reported that Volkswagen CEO Oliver Blume is considering reducing the workforce by as many as 100,000 positions out of the group's approximately 657,000 employees.


The figure is double the previously announced target of around 50,000 job cuts by 2030, a plan that had already been regarded as unprecedented.


According to the report, Blume has already presented the proposed restructuring strategy to the company's board.


Another source said the plan intentionally avoids specifying an exact number of job cuts to allow flexibility as discussions continue.


The restructuring is also expected to include the closure of four production facilities over the medium term.


The affected sites are reportedly Volkswagen's factories in Hanover, Zwickau and Emden, along with Audi's plant in Neckarsulm, Baden-Württemberg. Production at those facilities would end after the current vehicle models reach the end of their manufacturing cycles.


It remains uncertain how such extensive layoffs could be implemented under existing labour agreements. Volkswagen currently guarantees employment until the end of 2030, while Audi's job protection agreement extends through the end of 2033.


Beyond workforce reductions, the report says the company is considering a major corporate reorganisation. The core Volkswagen passenger car brand and the components division could be separated from the group and established as independent companies, potentially making it easier to list individual businesses on the stock market in the future.


The reported restructuring plans come amid mounting financial challenges facing the automaker. In the first quarter of 2026, Volkswagen's net profit dropped 28% to €1.56 billion, while revenue declined 2% to €75.7 billion.


At the time, chief financial officer Arno Antlitz warned: "The cost cuts planned so far are not enough. If we fail to achieve this, we risk our future."


The company is also facing additional pressure from U.S. tariffs, which Antlitz said are costing the group roughly €4 billion annually. At the same time, Volkswagen's sales in China—its largest single market—fell by 20% during the first quarter as domestic manufacturers such as BYD continued expanding both within China and into European markets.


By Bakhtiyar Abbasov