Volkswagen is reportedly considering cutting as many as 100,000 jobs worldwide, a figure that could climb to 140,000 once planned plant closures after 2030 are factored in. The information comes from an internal memo written by CEO Oliver Blume, which frames the cuts as necessary to close a 20 percent cost disadvantage compared to rival automakers. Four German plants are said to be at risk: Emden, Hannover, Zwickau and Neckarsulm.
From 35,000 to potentially 140,000 job losses
The scale of the cuts has grown considerably since the original agreement. A deal reached with unions in late 2024 initially called for around 35,000 job reductions, a number that later rose to 50,000 once Audi, Porsche and software subsidiary Cariad were included.
According to Blume’s memo, sent to staff on 13 July, another 50,000 cuts would need to be added on top of what has already been agreed in order to match competitors on cost. That would bring the total close to 100,000 positions globally. If plant closures planned for after 2030 go ahead, roughly 40,000 additional jobs could be affected, pushing the overall exposure toward 140,000.
Why Volkswagen is under pressure
The Wolfsburg based manufacturer is dealing with falling profits, the impact of tariffs and increasingly aggressive competition from Chinese carmakers, with BYD having overtaken Volkswagen in the Chinese market. Volkswagen shares have dropped more than 33 percent since the start of 2026, sitting at their lowest level in sixteen years.
Weaker than expected demand for electric vehicles has also weighed on the group, contributing to production halts in Germany. Annual production has fallen from around 12 million vehicles a few years ago to roughly 9 million today, with margins cut in half compared to five years earlier. The broader German auto industry is facing similar pressure, with significant reductions also underway at Bosch and Ford.
Which plants and models could be affected
Blume reportedly wrote that the company cannot yet guarantee a competitive future beyond 2030 for four German plants: Emden, Hannover, Zwickau and Neckarsulm. As part of the cost cutting effort, Volkswagen is said to be considering gradually shrinking its model lineup.
Models mentioned as potentially at risk include the Volkswagen Polo, the Skoda Fabia and Kamiq, the Audi Q5 Sportback, and several Porsche models including the Taycan, Panamera and Cayenne Coupe. On the industrial side, management has reportedly explored converting underused plants to defense production or to assembling Chinese branded vehicles in Europe.
Unions push back as tensions escalate
The supervisory board has already rejected the plan, voting 12 against and 7 in favor. In Germany, worker representatives hold half the seats on the board under codetermination rules, and together with Lower Saxony, the group’s second largest shareholder, they effectively hold a majority against the closures.
The IG Metall union has already organized protests at Volkswagen, Audi and Porsche plants. Blume is expected to meet employees at the Wolfsburg headquarters on 25 August**, followed by visits to the Emden and Zwickau plants the next day.
The pressure extends beyond Volkswagen. BMW recently reported its steepest quarterly profit decline in years, while Mercedes Benz has lowered its 2026 forecasts, pointing to challenges across the entire German automotive sector.
