On June 27th, according to foreign media reports, two insiders said that Volkswagen is considering laying off up to 100000 employees and closing four German factories, which will be its largest restructuring to date.

Reuters reported that the above-mentioned insiders revealed that members of Volkswagen's supervisory board have been informed of these plans, which will be discussed at the meeting on July 9th.

The unions of Volkswagen and IG Metall have vowed to resist any such measures and stated in a joint statement, "If such plans are implemented, we will do everything we can to stop them

The governor of Lower Saxony, Germany, stated that the state will not agree to this plan.

In absolute terms, laying off 100000 employees and closing four assembly plants will be the largest restructuring in the history of the automotive industry.

This reform was first reported by Manager Magazine, which stated that the world's second-largest automaker will cut investments by about 15% over the next five years, to just over 130 billion euros.

The high costs are only superficial, not the root cause. They have not solved the fundamental problem, which is weak sales, "said Ingot Speeche of Volkswagen shareholder DeKa Group to Reuters.

According to the Financial Times, a rough estimate suggests that this move could save a significant amount of costs. Volkswagen's average annual salary per employee is about 70000 euros, so layoffs can save about 7 billion euros annually.

Citigroup estimates that closing factories can further reduce capital expenditures by 3 billion euros annually. The two can save about 10 billion euros in total, but severance pay and other expenses need to be paid. (Zhongxin Jingwei APP)