Volkswagen is preparing to eliminate up to 100,000 jobs worldwide, roughly 15% of its entire workforce, in what would be the largest single restructuring event in automotive history. The move represents a doubling of an earlier plan that targeted 50,000 cuts, signaling that CEO Oliver Blume believes the company’s problems are far deeper than initially acknowledged.

For context, VW employs around 657,000 people globally. Cutting 100,000 of them is the corporate equivalent of depopulating a mid-sized city.

What’s driving the cuts

Four German plants are reportedly on the chopping block: Hanover, Zwickau, Emden, and Audi’s facility in Neckarsulm. Together, those locations employ more than 45,000 workers.

The restructuring plans were first reported by Manager Magazin on June 26, 2026. Since then, Reuters, Financial Times, CNBC, and The Guardian have all confirmed elements of the strategy. A board meeting to formally discuss the job cuts is expected around July 9, 2026.

The IG Metall union and the works council have already pushed back hard against the proposed cuts. The state of Lower Saxony, which holds a significant stake in VW, is also resisting. Germany has strong labor protections, which means actually executing 100,000 job cuts will be a protracted, politically charged process.

Why crypto and macro investors should care

Massive industrial restructurings have macroeconomic consequences. A hundred thousand lost jobs, even phased over several years, puts downward pressure on consumer spending in Germany, Europe’s largest economy. That feeds into ECB monetary policy decisions, euro weakness, and risk appetite across global markets.

Investors should monitor the July 9 board meeting closely. The specifics of which plants close, what timeline VW commits to, and how the union negotiations unfold will determine whether this restructuring is orderly or chaotic.