Volkswagen Plans to Cut up to 100,000 Jobs as Cost Crisis Deepens

TLDR

• Volkswagen CEO Oliver Blume told employees the company may cut another 50,000 jobs on top of 50,000 already agreed
• The company operates at a 20% cost disadvantage compared to rivals
• Four German factories — Emden, Hanover, Zwickau, and Neckarsulm — face an uncertain future beyond 2030
• Labor representatives blocked restructuring proposals at last week’s supervisory board meeting
• Volkswagen is also reviewing its model lineup, potentially cutting it by half

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Volkswagen, Europe’s largest automaker, is considering cutting up to 50,000 more jobs as it tries to close a growing cost gap with global rivals. That would bring total planned job losses across the group to as many as 100,000.

Volkswagen CEO Oliver Blume outlined a plan to eliminate as many as 50,000 more jobs globally as he attempts a far-reaching overhaul to reduce costs at Europe’s biggest carmaker https://t.co/cj1wfzZ5xI

— Bloomberg (@business) July 13, 2026

CEO Oliver Blume shared the figures in an internal memo to employees, first reported by Reuters on Monday. Blume said the company currently carries a 20% cost disadvantage compared to similar automakers, which translates into a “theoretical deduction” of another 50,000 positions worldwide.

“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” Blume wrote.

Earlier Cuts Already Underway

Volkswagen had already agreed to around 50,000 job reductions across the group, including at its Porsche and Audi units. That earlier plan, reached with the company’s union more than 18 months ago, committed Volkswagen to billions in cost savings and 35,000 cuts in Germany by the end of the decade, while ruling out immediate factory closures.

A separate agreement covered 15,000 additional cuts at Audi, Porsche, and the group’s Cariad software division. In the first quarter of this year, Volkswagen reduced overhead costs by 1 billion euros under that plan. But the company warned more steps would be needed.

German Factories Face an Uncertain Future

Four German plants — in Emden, Hanover, Zwickau, and Neckarsulm — are now under review. Blume said the company has not yet found competitive long-term uses for those sites beyond 2030.

Labor representatives reportedly blocked restructuring proposals at last week’s supervisory board meeting. Those proposals were said to include further job cuts and possible plant closures.

Blume said he would prefer to find new uses for underused factories rather than shut them down. Options being considered include producing Chinese Volkswagen models in Europe or converting capacity for defense-related manufacturing.

The company is also reviewing its model lineup, with plans to cut it by as much as half. Volkswagen is narrowing its focus to its most attractive market segments while adjusting production to match current demand.

“The global situation has continued to deteriorate over the past twelve months,” Blume said following last week’s board meeting.

Volkswagen is under pressure from several directions: billions in tariff costs, weaker demand, growing competition from Chinese electric vehicle makers, and the high cost of its German manufacturing network. The company’s stock closed at $8.21 on Friday, down 1.08%. Its longer-term technical trend remains under pressure, with moving averages showing a unanimous strong sell signal.