Volkswagen Plans to Cut 100,000 Jobs Globally as Automakers Streamline Operations

[Company News] Volkswagen plans to expand its workforce reduction to 100,000 employees and shut down four plants in Germany.

Key Development: One in Six Global Employees Affected

Volkswagen employed approximately 667,000 people in fiscal year 2025, with 43% based in Germany. If the planned layoff of 100,000 staff is implemented, it would mean one out of every six employees worldwide will leave the company—far exceeding the initial proposal of cutting 50,000 jobs.

Industry Impact: Entire Supply Chain Enters Strategic Contraction

Since 2026, automakers ranging from German luxury brands and U.S. EV startups to century-old suppliers have widely initiated layoffs, plant closures, and organizational streamlining. Primary drivers include rising raw material costs, intensifying price wars, and slowing growth in end-market sales, forcing companies to optimize costs to manage profitability pressures.