Volkswagen is weighing a dramatic restructuring plan that could involve shutting down four of its German manufacturing facilities and eliminating as many as 100,000 positions — a move that would potentially go down as the most sweeping overhaul the auto industry has ever seen.
The automaker is under growing strain from aggressive competition out of China, steep tariffs on vehicles entering the U.S. market, and a sharp drop in consumer demand across Europe. Volkswagen has stated that these pressures have made its current business model impossible to sustain.
To put the potential scale of Volkswagen’s cuts in context, here is a look at some of the largest workforce reductions ever announced in the global auto industry:
General Motors — December 1991
Jobs cut: 74,000
General Motors announced it would eliminate 74,000 positions and shut down 21 production plants as the auto sector grappled with massive financial losses driven by sluggish sales and growing competition from Japanese manufacturers.
General Motors — 2006 to 2009
Jobs cut: 60,500
Over a three-year span, General Motors eliminated 60,500 factory jobs, which represented half of its entire manufacturing workforce. The company also announced plans to reduce its white-collar staff by 20%, though no exact number was given. Its salaried employee count had been 110,000 as of December 2005.
General Motors — February 2009
Jobs cut: 47,000
As part of a broader restructuring effort, General Motors announced it would eliminate 47,000 jobs over the course of the year. The company also revealed it would require $30 billion in government funding from taxpayers in order to remain viable.
Ford Motor — January 2002
Jobs cut: 35,000
Ford announced it would cut 35,000 jobs across its global operations, close five plants in North America, and reduce its production capacity by 16% as part of a wide-ranging restructuring initiative.
Volkswagen — January 1993
Jobs cut: 30,000
Volkswagen previously announced a plan to eliminate 30,000 jobs at plants around the world by the end of 1994. The cuts were part of a plan developed across its four brands at the time: VW, Audi, SEAT SA, and Skoda.
