Volkswagen’s brutal jobs cull sparks prospect of sale of crown jewels – FT

Volkswagen is reportedly planning to cut up to 100,000 jobs and cease production at four German factories, marking most significant restructuring in the company’s 89-year history. The move, which includes the potential closure of plants in Hanover, Zwickau, Emden, and Neckarsulm, reflects the automaker’s efforts to address intensifying competition from Chinese car manufacturers and declining profitability. The proposed job cuts represent a 15% reduction in the company’s workforce and a 15% reduction in planned investment over the next five years, bringing total investment to just over 130 billion euros ($148.2 billion).

The restructuring comes amid a broader strategic shift toward electric vehicles (EVs), though some critics argue that the company’s EV strategy has not aligned with market demand. A 2024 agreement with unions had previously aimed to avoid factory closures and compulsory redundancies until 2030. However, the latest developments suggest a more aggressive approach is now being considered.

Volkswagen has not officially confirmed the details, citing the confidential nature of internal documents. The company’s shares have fallen more than 25% year-to-date, reflecting investor concerns over the restructuring and its potential impact on long-term profitability.