On the Dash:
- Volkswagen may cut up to 100,000 jobs, doubling a previously announced reduction target.
- The automaker is considering closing four German plants, including facilities in Hanover, Zwickau, Emden and Audi’s Neckarsulm site.
- Volkswagen’s works council and IG Metall say they will fight the plan if it moves forward.
Volkswagen is considering cutting up to 100,000 jobs and closing several German factories as CEO Oliver Blume pushes to improve the automaker’s competitiveness, according to a report from Manager Magazin. Blume presented the proposal during a management board meeting earlier this week, the report says.
The plan aims to double the previously announced workforce reductions to up to 100,000 employees. Currently, the automaker employs about 657,000 people worldwide, and has plans to present its updated strategy to the supervisory board next month.
Despite the job cuts, VW continues to navigate U.S. tariffs, slowing demand in China, and intensifying competition in Europe from automakers such as BYD and Stellantis. The company is also reportedly targeting €11 billion ($12.5 billion) in overhead cost reductions by the end of the decade.
Organizational changes under review
The reported plan includes closing four German facilities:
- Audi’s Neckarsulm plant
- Volkswagen factories in Hanover, Zwickau and Emden.
Management is also evaluating the separation of its component business and the restructuring of the core Volkswagen brand to improve profitability.
A company spokesperson said Volkswagen “must undergo profound change” but declined to comment on the details of the report. The spokesperson said the executive board has spent recent months developing a long-term strategy to realign the company.
Volkswagen’s works council and IG Metall criticized the reported plans, saying they would strongly oppose additional job cuts and plant closures. Notably, labor representatives hold half the seats on Volkswagen’s supervisory board, while the German state of Lower Saxony also holds significant influence over major corporate decisions.
Approximately 28,000 employees have already agreed to leave the company as part of previously announced restructuring efforts. Volkswagen has also reduced planned annual production capacity from roughly 12 million vehicles to about 9 million.
