Volkswagen plans to close four plants in Germany and lay off 100,000 employees

Volkswagen, a major automaker operating in Germany, is considering closing four of its plants in the country and reducing its workforce to under 100,000 employees, according to Zamin.uz.

Reuters reported that the proposal has been presented to members of the company's supervisory board.

The issue is expected to be discussed at a meeting scheduled for July 9. According to reports, plants in Hannover, Zwickau, and Emden, as well as a facility belonging to Audi in Neckarsulm, could be shut down.

This would result in the loss of more than 45,000 jobs, adding to Volkswagen's previously announced plan to cut 50,000 positions.

If implemented, the layoffs of nearly 100,000 workers and the closure of four plants could become one of the largest restructuring efforts in the history of the global automotive industry. Company CEO Oliver Blume presented the proposal to senior managers at the beginning of the week.

While he aims to implement sweeping reforms, the decision may face resistance from labor unions and the government of Lower Saxony, which is Volkswagen's second-largest shareholder.

Additionally, Volkswagen is reviewing a plan to reduce its investment volume over the next five years by approximately 15%, bringing it down to just over 130 billion euros.

The company is also considering separating its core Volkswagen brand and parts business into distinct entities.