Volkswagen is considering eliminating up to 100,000 jobs and closing four factories in Germany as part of what could become the largest restructuring effort in the company's history, according to people familiar with the matter.
The proposals have been presented to members of the supervisory board and are expected to be discussed at a meeting scheduled for July 9.
The reported measures would expand on approximately 50,000 job reductions previously agreed with unions in late 2024 and reflect a broader effort to reduce costs and reorganize the company's operations.
The factories reportedly under consideration for closure are located in Hanover, Zwickau, Emden and Audi's Neckarsulm site, placing more than 45,000 additional jobs at risk.
Chief Executive Oliver Blume is said to have outlined the proposals to senior executives as part of a wider strategy to restructure the automaker.
The reported overhaul also includes a reduction of planned investment by about 15% to just over €130 billion over the next five years, alongside consideration of separating the core Volkswagen brand and parts operations into distinct entities.
Volkswagen declined to comment on confidential internal documents but said the entire group, including its brands and subsidiaries, must undergo far-reaching change because its existing business model is no longer sustainable across all brands.
The company cited tariffs, growing competition and stagnating or declining markets as significant financial pressures.
Volkswagen's plans come as the company faces increasing competition from Chinese automakers while managing the transition toward electric vehicles.
The group has steadily lost market share in China in recent years and has also faced stronger competition in Europe from expanding Chinese manufacturers.
The works council and Germany's IG Metall union said they would oppose any such measures, stating, "Should such plans go ahead, we would do everything in our power to prevent them."
The proposals remain under discussion and could change before any final decisions are made.
Volkswagen's shares traded near 16-year lows following the reports, reflecting investor uncertainty over whether the restructuring can restore the company's long-term competitiveness.