Volkswagen plans 100,000 job cuts, sells engine unit in massive restructuring

Key Facts

As part of a sweeping restructuring in the European auto industry, Volkswagen has expanded its plan beyond selling a majority stake in its engine unit Everllence for €7.4 billion to include cutting up to 100,000 jobs globally, according to a Manager Magazin report citing CEO Oliver Blume. Volkswagen shares rose 2.4% following the initial asset sale announcement, reflecting early investor optimism.

The move comes as Volkswagen faces mounting pressure to cut costs and accelerate its transition to electric vehicles. The earlier sale of a majority stake in Everllence was valued at €7.4 billion ($8.41 billion), making it one of the largest asset disposals in the sector this year. Further reports indicate the company may provide additional details on job cuts by region and division in the coming months.

Investors are now watching the stock's levels following the job-cut announcement. The stock closed at $8.75 on June 24, 2026, with a daily trading range of $8.72 to $8.92 per market data. Analysts eye support at $8.72 and resistance at $8.92, while markets await any management comments on using sale proceeds for early retirement programs or severance packages.