Volkswagen is eliminating up to 100,000 jobs globally, representing roughly 15% of its workforce, marking the largest restructuring event in the automaker’s history. CEO Oliver Blume cited a 20% cost disadvantage against competitors as the primary driver behind the dramatic expansion of job cuts from the previously announced 50,000 reductions.
The planned closures include four German manufacturing plants: Hanover, Emden, Zwickau, and Audi’s facility in Neckarsulm. Together, these locations employ more than 45,000 workers. Volkswagen also plans a 15% reduction in investment over the next five years and may halve its model lineup.
According to an internal memo reviewed by Reuters, Blume stated that Volkswagen’s operational expenses exceed those of comparable manufacturers by approximately 20%, a gap that theoretically justifies removing another 50,000 positions on top of previously agreed cuts. The automaker faces compounding pressures from substantial tariff expenses, softening consumer demand, and escalating competition from Chinese electric vehicle manufacturers.
German labor union IG Metall and Volkswagen’s General Works Council have already signaled strong resistance. In a joint statement, they declared: “If such plans are pushed forward, we would prevent them with all our might.” Germany’s robust labor protections mean any restructuring will be a lengthy, politically complex process involving negotiations with unions and the state of Lower Saxony, which holds a significant stake in the company.
The supervisory board was expected to discuss the restructuring plan in detail at a July 9 meeting. While no formal announcement has been made, company officials acknowledged that “the global situation has continued to deteriorate over the past twelve months.” Volkswagen’s stock has declined more than 30% so far in 2026.
A previous agreement reached in late 2024 had already committed Volkswagen to eliminating around 50,000 positions by 2030, with over 20,000 departure agreements already signed across Volkswagen, Audi, Porsche, and software unit CARIAD as of the company’s June annual general meeting.
