In brief
Volkswagen’s chief executive, Oliver Blume, has announced a planned reduction of up to 100,000 jobs globally, a figure double the earlier target. The cuts come after a sharp profit decline, driven by poor sales in China and the United States, and heightened competition from Chinese automakers. Blume cited a 20% higher cost structure than rivals and highlighted the need to become more efficient. The plan targets several German plants deemed too expensive to operate; previous agreements with IG Metall had already earmarked 35,000 jobs to be lost by 2030. Protesters have staged nationwide demonstrations ahead of the supervisory board meeting that may bring further negotiations to the surface.
Chief Executive Oliver Blume confirmed that Volkswagen Group plans to reduce up to 100,000 jobs worldwide – double the figure previously announced.
The German automaker, which owns Porsche, Audi, SEAT and Škoda, had originally sought to cut about 50,000 positions in Germany by 2030. The new restructuring target is broader and more ambitious.
Volkswagen’s profits slumped sharply last year, falling from €19.1 bn in 2024 to just €8.9 bn in 2025 after strong declines in China and the United States and stiff competition from Chinese rivals.
In a memo to staff, Blume explained that “our costs are 20 % higher than those of rivals, so we must become more efficient, more robust and simpler.”
He noted that four German factories – notably Zwickau and Emden – cannot yet be repurposed, and that other plants in Hanover and Neckarsulm are expensive to run.
Earlier this year, after a threat of mass strikes, the company had agreed with IG Metall to cut 35,000 jobs at the VW brand by 2030, and another 15,000 across other brands. The new figures are expected to exceed that commitment.
Protests erupted last week at VW sites across the country ahead of a supervisory board meeting that includes worker representatives and company managers. Industry analysts warn that the 100,000 figure could be a negotiating tactic; the final cut may be lower.
