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Volkswagen Considers Closing Up to Four German Plants and Cutting 15 Percent of Jobs After 44 Percent Profit Drop
Volkswagen Group is considering the closure of up to four factories in Germany along with layoffs that would shrink its workforce by 15 percent. The steps follow a 2025 in which profits fell 44 percent despite flat sales.
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Volkswagen Group is considering closing up to four factories in Germany and instituting layoffs that would shrink its workforce by 15 percent. The plans were outlined in a report by Manager Magazin that Reuters confirmed. The automaker reported flat sales in 2025 but saw profits drop 44 percent to 6.9 billion euros.
Operating margins more than halved during the year. Sales of electric vehicles remained strong in Europe, yet volumes declined in North America and China, where tariffs weighed on results. In March the company announced plans to cut 50,000 jobs in Germany by 2030.
The new proposal would add another 45,000 reductions, bringing total German job losses to roughly double the earlier figure. Volkswagen currently employs more than 650,000 people across ten car brands and other divisions. Chief executive Oliver Blume is scheduled to present the plan, which includes the factory closures, to the board next month.
Plants under consideration are located in Hannover, Zwickau, and Emden, along with Audi’s facility in Neckarsulm. The company is part-owned by the state of Lower Saxony.
