Volkswagen Group's CEO, Oliver Blume, has confirmed a workforce reduction of up to 100,000 global positions, effectively doubling the earlier 50,000‑post cut figure announced for Germany. The scale of the proposed layoffs reflects the company’s need to curb costs amid a sharp plunge in operating profit – from €22.6bn in 2023 to €8.9bn in 2024.
Blume’s memo to staff outlined that the group’s cost structure is 20% higher than that of its rivals, and that a further reduction in spending will inevitably threaten employment. He warned of “theoretical” job losses of 50,000 worldwide, while acknowledging that concrete numbers will be refined during a review across all brands, companies and regions.
The announcement echoes a 2025 agreement with IG Metall that earlier cut 35,000 VW‑brand jobs and 15,000 from other brands by 2030, described as “socially responsible”. With additional protests erupting across German production sites ahead of the supervisory board meeting, industry analysts speculate the 100,000‑job figure may be a bargaining chip.
Key factories flagged for potential closures include Zwickau, Emden, Hanover and Neckarsulm – largely electric‑vehicle production plants deemed costly to run. The decision comes at a time when VW’s heavy loss of sales in China (down 26% in the first half of the year), stiff U.S. competition and aggressive entry by continental Chinese brands have eroded its margins.
While the company’s official stance stresses the need for efficiency, the broader industry context suggests a looming restructuring of the German auto sector as a whole. The move will be closely watched by labor unions, shareholders and competitors alike as the global auto market shifts toward new technologies and cost structures.
