VW may close four factories to adapt to the future, report says

Ars Technica Published Jun 26, 2026 Reviewed Jul 2, 2026 ✓ Reviewed by citations.press editors

Volkswagen Group is considering closing up to four factories in Germany and instituting layoffs that would shrink the workforce by 15 percent.

at least 4 factories · factories in Germany15 % · workforce

In 2025, Volkswagen Group's profits dropped 44 percent to 6.9 billion euros ($7.9 billion).

44 % · profits6900000000 EUR · profits7900000000 USD · profits

Volkswagen announced in March that it would cut 50,000 jobs in Germany by 2030.

50000 jobs · jobs in Germany

According to a report in Manager Magazin, job losses may double from the previously announced 50,000.

about 100000 jobs · job losses in Germany

Volkswagen Group is considering what was previously unthinkable: closing up to four factories in Germany and instituting layoffs that would shrink the workforce by 15 percent.

2025 was a bad year for Europe's largest automaker. Its sales were essentially flat, but profits were anything but, dropping 44 percent to just 6.9 billion euros ($7.9 billion) as operating margins more than halved. The red ink looks set to continue bleeding through 2026, and in March, the company announced it would cut 50,000 jobs in Germany by 2030 as part of a plan to adapt. Now, according to a report in Manager Magazin, those job losses may double.

The automaker did well selling EVs in Europe last year, but sales in North America and China fell and continue to fall, and tariffs have had a significant effect.

This article was originally published by Ars Technica ↗. citations.press indexes the source-backed facts above and links to the original. Something wrong? Corrections policy · Report an error