Volkswagen to Trim Up to 100,000 Jobs as Costs Surge

The chief executive of the German car giant Volkswagen Group confirmed it is planning to cut up to 100,000 jobs worldwide, doubling the previously stated 50,000‑job target in Germany.

In a memo to staff, Oliver Blume warned that the group’s costs are 20 % higher than rivals, a shortfall that demands further reductions. Blume said a global loss of 50,000 jobs would be required to bring outgoings in line with industry peers.

The cuts come after a steep decline in profits last year—€22.6 bn in 2023, falling to €8.9 bn in 2025—and a sharp drop in sales in China, where margins are eroding as Chinese brands enter Western markets.

Two German plants that produce electric vehicles, in Zwickau and Emden, have been identified as costly to run, along with the Hanover and Neckarsulm facilities. Automakers have already been preparing for wind‑fall strikes, and the company has agreed with IG Metall to cut 35,000 jobs at the VW brand by 2030.

Protests erupted across the country ahead of the supervisory board meeting, and analysts suggest that the 100,000 figure could be a bargaining tactic, keeping the final number lower.

The measures will force a major restructuring, but they also risk alienating workers, suppliers, and customers in the shift toward electric mobility.