Volkswagen is facing a massive workforce crisis, planning to cut up to 100,000 jobs globally to combat rising costs and competition from agile Chinese electric vehicle manufacturers. Currently employing nearly 630,000 people, VW maintains a headcount significantly larger than competitors like Toyota and Ford due to strategic decisions to manage production and software internally. This bloated workforce, exacerbated by complex brand integrations and high labor costs in Germany, has become a financial burden. The company faces intense pressure from powerful trade unions and the state of Lower Saxony, which holds a 20% voting stake. To survive the "Chinese EV onslaught" and address slowing sales in China and Europe, VW is considering closing four German factories and seeking €4 billion in savings through radical reforms, including increased automation and potential production shifts toward Asia to remain competitive.