By Hammad Kahlun
Scandinavian news Finland
Frankfurt/Berlin VW Confirms CEO Oliver Blume has confirmed the automaker may cut up to 100,000 jobs worldwide, in what would be the largest restructuring in the company’s history, as Germany’s economy faces mounting recession pressure.
VW Confirms Additional 50,000 Job Cuts
In an internal memo sent to staff, Blume said VW Confirms could eliminate an additional 50,000 positions on top of 50,000 cuts already agreed with unions in 2024. This would bring total reductions to roughly 100,000 jobs.
Blume cited a 20% cost disadvantage compared to competitors as the basis for the potential cuts. He said the company is “assessing across all brands, companies and regions” how many adjustments are necessary.
Four German Plants Under Threat
The memo also confirmed uncertainty over four German factories in Emden, Hanover, Zwickau, and eckarsulm with Blume stating the company “cannot confirm competitive use cases” for these plants through the 2030s.
Volkswagen’s General Works Council and union IG Metall have strongly opposed the proposed cuts, pledging to resist any closures “with all our might.”
Context: Germany’s Economic Pressure
Volkswagen, Germany’s largest employer with roughly 657,000 workers globally, has seen its stock fall more than 30% since the start of 2026. The company faces pressure from U.S. tariffs, declining EV profit margins, and intensifying competition from Chinese manufacturers.
The restructuring reflects broader strain on Germany’s export-driven economy, which has struggled with weak industrial output and rising energy costs in recent years.
VW leadership/executives
About The Author
