Volkswagen Plans Massive Global Job Cuts

Sun Sep 06 2026 17:56:01 GMT+0000 (Coordinated Universal Time)

Volkswagen Group revealed plans to cut 100,000 jobs worldwide, sparking industry upheaval.

Volkswagen Group announced a plan to cut up to 100,000 jobs globally, twice the previously stated target. The move comes amid falling profits and fierce competition from Chinese automakers. Executives cited higher operating costs and the need to boost efficiency. The cuts affect factories, especially those producing electric vehicles. Industry analysts warn that the final number may be lower, but unrest is already on the rise.

Volkswagen Plans Massive Global Job Cuts

By Theo Leggett, International Business Correspondent

Published 9 hours ago

Volkswagen Group’s chief executive confirmed the company is looking to cut up to 100,000 jobs worldwide, twice as many as previously stated.

The German conglomerate, which includes Porsche, Audi, Seat and Skoda along with the VW brand, previously aimed to remove around 50,000 positions in Germany by 2030.

Last year’s steep profit decline—driven by falling sales in key markets and rising competition from Chinese automakers entering Europe—prompted the leadership to push for even deeper cost cuts.

In a memo to staff, CEO Oliver Blume noted the Group’s costs were 20% higher than competitors, calling for further reductions. He estimated a theoretical loss of 50,000 jobs worldwide, but now envisaged up to 100,000 across all brands and regions.

Blume added that four German factories had no confirmed alternative uses and that certain plants—particularly those in Zwickau and Emden producing electric cars—were costly to run. Other factories in Hanover and Neckarsulm were likewise considered inefficient.

Volkswagen’s operating profit dropped from €22.6 bn in 2023 to €8.9 bn last year, with sales declines of 26% in China and over 7% in the United States due to trade tariffs.

Chinese brands’ aggressive entry into international markets and lower production costs have further pressured European manufacturers, squeezing profit margins and intensifying cost‑cutting pressures.

In late 2024, after threats of mass strikes, VW agreed with trade union IG Metall to cut 35,000 jobs at its namesake brand by 2030, followed by 15,000 more at other brands.

Protests erupted across VW sites last week ahead of a supervisory board meeting that includes labor representatives and company managers.

Industry analysts speculate that the 100,000‑job target may have been presented as a negotiation tactic, with the final figure potentially lower.