Oliver Blume (c) Copyright 2025, dpa (www.dpa.de)
A major shakeup is brewing at the Volkswagen Group in Wolfsburg. According to manager magazin, as cited by Euronews, Group CEO Oliver Blume plans to cut up to 100,000 jobs across the entire group from the current total of approximately 657,000. This would mean doubling the previously announced reduction plan.
Several months ago, VW announced that it intended to cut about 50,000 jobs by 2030, and even then, this move was considered historically unprecedented.
According to sources, Blume has already presented a corresponding plan for the company’s turnaround to the board. However, the document deliberately omits a specific figure to leave room for further details on the measures.
Four plants face closure
In addition to staff reductions, there are plans to close four production sites in the medium term. These include the VW plants in Hanover, Zwickau, and Emden, as well as the Audi plant in Neckarsulm in the state of Baden-Württemberg.
According to the plans, production at these facilities will be phased out as production of the models currently manufactured there comes to an end.
It remains to be seen how such a large-scale workforce reduction can be implemented in light of legal requirements and collective bargaining agreements: at Volkswagen, employment guarantees are in effect until the end of 2030, and at Audi, until the end of 2033.
In addition to staff reductions, the group reportedly intends to carry out a major reorganization of its structure. The key Volkswagen brand, as well as the components division, are planned to be spun off from the group and transformed into independent companies. Following this logic, it will be easier to take the spun-off brands public in the future.
A Crisis with a Long History
The current plans are, for now, merely the tip of the iceberg of a deep structural crisis. In the first quarter of 2026, the group’s net profit fell by 28% to 1.56 billion euros, while revenue dropped by 2% to 75.7 billion euros.
Chief Financial Officer Arno Antlitz warned at the time: “The cost-cutting measures currently planned are not enough. If we fail to achieve more, we are putting our future at risk.”
U.S. tariffs have become an additional burden; according to Antlitz, they cost the group an additional approximately 4 billion euros annually.
At the same time, in its most important individual market, China, VW saw a 20% drop in sales in the first quarter: Chinese manufacturers, such as BYD, are gaining ground not only in their home market but also increasingly in Europe.
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