Volkswagen chief executive Oliver Blume has confirmed the German car giant is planning to cut up to 100,000 jobs worldwide – twice as many as previously stated – in a drive to slash costs that are 20% higher than rivals.
In a widely-reported memo to staff, Blume said the group, which owns Porsche, Audi, Seat and Skoda as well as the VW brand, needed to become “more efficient, more robust and simpler” and “must reduce our costs.” The theoretical loss of 50,000 additional jobs comes on top of an earlier plan to axe 50,000 posts in Germany by 2030.
“Volkswagen CEO confirms plans to cut up to 100,000 jobs globally, double previous estimates.”
The announcement follows a steep decline in profits: operating profit fell from €22.6bn in 2023 to €19.1bn in 2024, and then plunged to just €8.9bn last year. Blume attributed the crisis to falling sales in key markets and intensifying competition from Chinese brands moving aggressively into Europe.
Sales in China, once one of Volkswagen’s most lucrative markets, dropped 26% in the first six months of this year compared with the same period last year. In the US, sales fell more than 7%, partly because of tariffs on car imports introduced by the Trump administration.
Blume also said the company had been “unable to confirm” alternative uses for four German factories that have previously been threatened with closure. Two of the plants, in Zwickau and Emden, are used for electric car production. Along with factories in Hanover and Neckarsulm, they are seen as expensive to run.
In late 2024, after threats of mass strikes, Volkswagen reached a deal with the German trade union IG Metall to cut 35,000 jobs at its namesake brand by 2030 in a “socially responsible manner”, with another 15,000 jobs to go at its other brands. The plans now under discussion appear to go much further.
Last week saw widespread protests at Volkswagen sites across Germany, ahead of a meeting of the company’s supervisory board, which includes labour representatives as well as managers. Some industry analysts suggested to Agence France Presse that Volkswagen had deliberately publicised the number of 100,000 as a negotiating tactic, and that the final figure of cuts is likely to be lower. Whether that proves true – or whether the crisis deepens – remains to be seen.
