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Volkswagen Faces Proposal to Cut About 100,000 Jobs

A board plan to slim models, sell or merge units, and end new-model allocations at some German plants has provoked strong union and state resistance ahead of a July 9 supervisory-board review.

Overview

  • Multiple outlets reported last weekend that VW’s executive board is working on a sweeping realignment that could reduce roughly 100,000 roles worldwide and shrink the group’s model and brand portfolio.
  • The company confirmed the board is intensively developing a ‘future plan’ to make the group leaner and more efficient but has not finalized any decisions.
  • Reports say four German plants — Emden, Zwickau, Hannover and Audi’s Neckarsulm — could lose new-model allocations, a step that would risk shutting production there when current models phase out.
  • Unions, the VW works council and Lower Saxony’s government have publicly rejected closures and moves that would weaken co-determination, and they have pledged to oppose any measures that breach the 2024 tariff deal.
  • Porsche may move Cayenne production from Bratislava to Leipzig if German workers accept wage concessions, a conditional shift that illustrates management’s broader push to cut costs and reassign capacity.