Volkswagen Board Faces Showdown Over Plan to Double Job Cuts to 100,000

The next chapter in Volkswagen’s restructuring drama comes to a head on July 9, when the company’s supervisory board gathers to debate a sweeping overhaul that would eliminate up to 100,000 jobs worldwide. That figure, reported by multiple outlets citing internal sources, marks a dramatic escalation from the 50,000 reductions previously planned through 2030.

Management, led by CEO Oliver Blume, has proposed doubling the original target. Of the initial 50,000 cuts, 35,000 were slated for the core VW brand alone. The new plan would touch roughly one in every six employees across a global workforce of 657,000. A company spokesperson confirmed that a restructuring blueprint exists as part of Volkswagen’s broader transformation, though insiders say the 100,000 number does not appear explicitly in board documents. Instead, a detailed matrix maps out the planned headcount reductions by division and site.

Part of the strategy involves pruning the product lineup from 150 models to fewer than 100.

Four German Plants in the Crosshairs

The cuts hit hardest at Volkswagen’s domestic production network. Four facilities are considered vulnerable: Hannover, Zwickau, Emden, and the Audi plant in Neckarsulm. Management is also weighing far-reaching structural changes, including the potential spin-off of the core VW brand and its components division.

Any mass layoffs, however, face a legal hurdle. A job-security pact that runs through 2030 remains intact, limiting the company’s ability to conduct compulsory redundancies. So far, roughly 37,000 employees have accepted severance packages.

Union and State Governments Dig In

The plans have triggered fierce resistance. IG Metall and Volkswagen’s works council have vowed to block the cuts with every available means. Works council chair Daniela Cavallo said the workforce would not accept the reductions without a fight.

Political opposition is equally sharp. In Lower Saxony, where the state government holds a blocking minority on the supervisory board alongside worker representatives, Premier Stephan Weil and Economy Minister Olaf Lies rejected any talk of plant closures. Saxon Premier Michael Kretschmer voiced deep concern about the implications for Germany’s industrial base. The federal government in Berlin said it wants to prevent closures but acknowledged Volkswagen’s right to make business decisions.

Economic Pressures Mount

The intensified cost-cutting follows a brutal year for the carmaker. Net profit for fiscal 2025 fell by nearly half. Analysts at ING and Berenberg pointed to the intense transformation pressure gripping the entire industry. On the stock market, Volkswagen shares closed at €74.28, down 3.91 percent on the day.

The July 9 board meeting will mark a critical juncture. Whether management can push through its plan against determined opposition from labor and the state remains the open question.

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