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Volkswagen Weighs Up to 50,000 More Job Cuts, Putting as Many as 100,000 Roles at Risk

A roughly 20% cost disadvantage has pushed management to pursue deep savings through contested talks that will decide plant uses and job losses.

Overview

  • Chief executive Oliver Blume told employees in a memo that management is assessing roughly 50,000 extra job cuts on top of a prior 50,000 plan, a figure he links to a 20% cost gap with peers.
  • The memo, reported by multiple outlets and circulated to staff on Monday, also said Volkswagen cannot yet confirm competitive uses for the Emden, Hanover, Zwickau and Neckarsulm plants into the 2030s.
  • Labour representatives on the supervisory board and the state of Lower Saxony blocked management’s detailed restructuring proposals at a recent meeting, so large-scale layoffs or closures remain contested and subject to negotiation.
  • Publicly, Volkswagen has committed to trimming annual production capacity and halving its model range while exploring repurposing options for underused factories such as defense work or making China-market models in Europe.
  • Analysts say the 100,000 figure may partly be a negotiating position, but the company’s internal confirmation and the scale of measures proposed raise material risks for employees, local economies and VW’s European footprint.