Shares in the German automaker fell nearly 2% in Frankfurt trading after reports of a restructuring plan twice the scale of its existing cuts
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Volkswagen stock fell to its lowest level in roughly 15 years on Monday after reports that the German carmaker is considering cutting up to 100,000 jobs. Trading on the Frankfurt stock exchange saw the stock drop close to 2%, a move that, if sustained through the close, would place it at its weakest finishing level since October 2010, MarketWatch reported.
The reported job cuts would represent the largest restructuring in Volkswagen's history. A union deal finalized in late 2024 had already set a target of eliminating around 50,000 positions across Volkswagen AG, Audi, Porsche, and software subsidiary CARIAD by 2030. The new figures, if confirmed, would push the total reduction to twice that level, according to prior Quartz reporting.
Among the sites under consideration for closure are three Volkswagen plants — in Hanover, Zwickau, and Emden — as well as Audi's facility in Neckarsulm, which together employ more than 45,000 workers. A supervisory board meeting to discuss the plan is scheduled for July 9, Reuters reported. Volkswagen has not confirmed the specifics, with a company spokesperson saying only that "the entire group, including its brands and subsidiaries, must undergo far-reaching change."
Labor opposition has been swift. IG Metall and Volkswagen's General Works Council released a joint statement saying that "should such plans go ahead, we would do everything in our power to prevent them."
The reported expansion comes as Volkswagen is already executing a significant cost-reduction program. At its June annual general meeting, CEO Oliver Blume said departure agreements covering more than 28,000 employees had already been signed, with a target of annual net savings of over €6 billion by 2030. Volkswagen's German factory costs fell by more than 20% in 2025 alone, the company said.
Financial pressure has mounted alongside the restructuring push. Volkswagen's first-quarter 2026 net profit fell 28% year-on-year to €1.56 billion, and revenue edged down 2% to €75.7 billion. Volkswagen Group CFO Arno Antlitz has estimated the annual cost of U.S. tariffs at roughly €4 billion. In China, the group's largest single market, first-quarter sales fell 20% as domestic automakers continue to erode Volkswagen's position there.
Volkswagen stock has shed more than a quarter of its value so far in 2026.
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