Volkswagen eyes 100,000 layoffs; Shuts four German plants

Volkswagen is reportedly planning one of its biggest restructurings, with a cut of 100,000 jobs and the end of production at four plants in Germany over the coming years. According to Manager Magazin, the reductions would affect about 15% of the automaker’s workforce, while planned investment would be reduced by roughly 15% to just over €130 billion (about $148.2 billion) across the next five years. The plan includes stopping production in Hanover, Zwickau and Emden, and Audi’s Neckarsulm site. CEO Oliver Blume and CFO Arno Antlitz presented the proposals to senior executives earlier this week, with expectations of resistance from labor unions and the state of Lower Saxony, a major shareholder. Volkswagen shares fell 3.4% to a 16-year low by 1:35 p.m. GMT Friday, and officials including the General Works Council and IG Metall said they would oppose the reported closures. Reuters noted criticism that weak sales—not just high costs—underlie the challenge.