Volkswagen is developing a restructuring plan that could eliminate up to 100,000 jobs globally. The proposal includes closing four German factories. Affected sites include plants in Hanover, Zwickau, Emden, and an Audi facility in Neckarsulm.
Management attributes the overhaul to a slow electric vehicle transition. High operational costs also drive the decision. Weakening demand across the European market further pressures the automaker's margins.
The company is considering spinning off its core passenger car brand and components manufacturing into independent entities. Volkswagen also aims to reduce capital expenditure by 15%. This reduction would occur over the next five years.
Volkswagen has not officially confirmed these details. However, the company has not denied the reported job cut figures. Capital markets have shown a relatively muted reaction to the news so far.