Volkswagen plans to cut up to 100,000 jobs and end production at four plants in Germany in a significant acceleration of its cost-cutting plans as Europe’s largest carmaker seeks to counter the rapid advance of Chinese rivals.The cull would mean the removal of close to one in six of the company’s roughly 625,000 roles worldwide, making it one of the biggest ever job-cutting programmes by a European company.The Wolfsburg-based group had already laid out plans to cut 50,000 jobs in Germany by the end of 2030 and has said it wants to reduce its car manufacturing capacity in the country by 500,000 units.The latest plan, first reported by German outlet manager Magazin, could lead the headcount to be slashed by another 50,000, according to one person familiar with the plan.Volkswagen (VW) is one of Germany’s biggest private industrial employers and the new job cuts plan is likely to set off a new round of tough negotiations with unions. Previous job-cut targets have often been softened following negotiations with worker representatives.Has the Irish building sector got themselves hooked on Government subsidies? Listen | 39:58The restructuring measures come on the heels of the blockbuster sale of its marine engines unit Everllence to US private equity firm Bain, which will generate proceeds of €7.4 billion.Chief executive Oliver Blume has sought to streamline the sprawling group to focus on its core automotive business and is expected to sell more assets to raise cash as the carmaker comes under pressure.VW reached a landmark agreement with unions at the end of 2024 to cut jobs and capacity in Germany, but the auto manufacturer has said the impact of US tariffs, the conflict in the Middle East and a worsening situation in China necessitates more action.[ EV sales set to overtake petrol as hybrids dominate new car marketOpens in new window ]Under the previous plan, the carmaker closed a small production site in the east German city of Dresden. It has been seeking a buyer for its factory in Osnabrück, where production is set to run out next year, and has held talks to the maker of Israel’s Iron Dome missile defence system.The new proposals would see production end at another four plants: VW sites in Emden, Zwickau and Hanover, as well as an Audi factory in Neckarsulm.Blume has previously said that closing factories outright was not his preferred solution, and that he was seeking “intelligent” approaches, such as producing Volkswagen’s Chinese models at the plants or handing them over to other carmakers or defence companies.European car manufacturers have been hit by the rise of Chinese carmakers, which accounted for almost one in 10 new vehicles sold in the region in the first five months of the year, according to European car industry body Acea.“Never has the risk situation been so high,” Blume told shareholders at VW’s annual meeting last weekThe company had targeted saving €6 billion per year by 2030 through the restructurings and said costs remained “the area where we have the greatest need for action”.VW declined to comment on the new plan, details of which are set to be presented to the company’s supervisory board on July 9th.“The underlying matters are discussed and approved by the relevant governing bodies. We will not pre-empt this process,” VW said.The reported details of the plan, which include a reorganisation that could limit employees’ rights at the company, produced an angry response from workers’ representatives. “Should such plans be pursued, we would oppose them with all our might,” said the head of VW’s works council Daniella Cavallo, the president of union IG Metall Christiane Benner and Lower Saxony union boss Thorsten Groeger in a statement.“What really matters is something else entirely: instead of engaging in blind, knee-jerk reactions, the management board should finally do its job,” they said. – Copyright The Financial Times Limited 2026