Volkswagen Plan to Cut 100,000 Jobs Sparks Showdown with Unions and States
28.06.2026 - 00:20:55 | boerse-global.de
Volkswagen is preparing to double the scale of its previously announced workforce reductions, putting up to 100,000 positions worldwide at risk—roughly 15 percent of the group’s global headcount of 657,000 employees. The drastic expansion of the savings target, originally set at 50,000 jobs by 2030, comes as management under CEO Oliver Blume pushes forward with a strategic overhaul dubbed Zielbild 2030.
Four German factories appear on a medium-term closure list: Hannover, Emden, Zwickau, and the Audi plant in Neckarsulm, which employs about 15,000 workers. The IAV engineering subsidiary in Stollberg, closely intertwined with Volkswagen, is also under pressure. Works councils and the IG Metall union have already announced protests.
At the heart of the radical course correction is a plan to give the core Volkswagen passenger-car brand greater independence from the group’s holding structure. Such a spin-off could pave the way for loosening the strictures of the VW Law, a move that some members of the controlling Porsche and Piëch families have pushed for in their drive to create a leaner corporate structure.
That vision is meeting fierce resistance. The works council insists the existing job-guarantee agreement, which runs through 2033, must be honored. The state of Lower Saxony, a major shareholder, has flatly rejected any plant closures. In Saxony, state premier Michael Kretschmer and economy minister Martin Dulig have also vowed to fight the cuts, while the federal government says it wants to prevent shutdowns—though officials acknowledge the company’s entrepreneurial freedom.
The VW announcement lands against a backdrop of economic cooling across Germany. The Ifo employment barometer dropped to 92.3 points in June, one of its lowest readings since the coronavirus pandemic. In retail and manufacturing especially, companies with plans to shed jobs outnumber those hiring by 18 percentage points.
Other firms are tightening as well. Online pharmacy DocMorris said it would eliminate roughly 100 full-time positions, citing increased use of artificial intelligence.
Volkswagen’s supervisory board is scheduled to meet on July 9, when a final decision on the drastic restructuring is expected.
