VW CEO plans to cut 100,000 jobs worldwide, report says

Volkswagen CEO Oliver Blume is planning to eliminate up to 100,000 jobs worldwide over the coming years, according to a report by Manager Magazin published on Wednesday, marking a dramatic escalation of the German automaker's already sweeping restructuring campaign.streetinsider+1

The plan would also reduce the company's five-year investment program by around 15% to just over €130 billion and includes potential closures of production facilities in Hanover, Zwickau, Emden, and an Audi plant in Neckarsulm, Manager Magazin reported. Under the proposal, the VW core brand and parts-manufacturing operations would be spun off into separate entities.streetinsider

A Restructuring That Keeps Growing

The latest report represents a substantial expansion of cuts already underway. At Volkswagen's annual general meeting on June 18, Blume told shareholders that the company would reduce its German workforce by 19,000 by the end of 2026, with binding agreements in place for more than 28,000 departures across Volkswagen, Audi, Porsche Dr. Ing. h.c. F. Porsche AG, and software subsidiary CARIAD by 2030. The broader target announced in March called for 50,000 job cuts in Germany alone by 2030.qz+3

Volkswagen declined to comment directly on the Manager Magazin report, stating that "relevant facts of the matter will be discussed and approved by the relevant bodies," while reiterating that its current business model no longer works for all brands.marketscreener

Years of Mounting Pressure

The expansion to 100,000 worldwide cuts reflects deepening pressure on Europe's largest automaker. Volkswagen's operating profit fell 44% in 2025, hitting its lowest level since 2016. In February, Manager Magazin reported that the group was targeting a 20% cost reduction across all brands by the end of 2028, equating to annual savings of €60 billion.youtube+2

In December 2024, Volkswagen reached a deal with the IG Metall union to avoid plant closures in Germany, agreeing instead to eliminate 35,000 positions through early retirement and buyouts. But the February report signaled that plant closures were back on the table, and the latest plan now explicitly names four facilities that could be shuttered.reuters+1

The company is targeting an operating return on sales of 8% to 10% by 2030 and annual net savings exceeding €6 billion. Blume told shareholders at the AGM that Volkswagen's German factory costs had already fallen more than 20% by 2025.layoffhedge+2