Volkswagen has confirmed it will cut 100,000 jobs globally, doubling earlier plans, as the company grapples with a steep decline in profits and higher operating costs compared to competitors. The announcement came from CEO Oliver Blume, who stated that the group is assessing adjustments across all brands and regions.
Profit Plummet Triggers Mass Layoffs
Volkswagen's operating profit fell from €22.6bn in 2023 to €19.1bn in 2024, and further to just €8.9bn in 2025. Sales have declined in key markets such as China and the United States, with tariffs and Chinese brand dominance cited as contributing factors, according to BBC News.
Blume noted that the group's operating costs are 20% higher than rival businesses, necessitating further reductions. "We need to become more efficient, more robust and simpler. We must reduce our costs," he said.
Previous Agreements Amplified
In late 2024, Volkswagen reached an agreement with German trade union IG Metall to cut 35,000 jobs at its namesake brand by 2030 in a "socially responsible manner," with an additional 15,000 jobs to go at other brands. Those plans have now been expanded to 100,000 job losses globally.
Blume acknowledged the impact on employees: "I can fully understand how deeply the current situation affects people within the company, as well as everyone in its immediate circle. I have spent my entire professional life with the group."
Four Factories at Risk
Four factories are believed to be at risk of closure: Emden, Hanover, Zwickau, and the Audi plant in Neckarsulm. However, Blume emphasized that "smart solutions are always better than closing a plant," as the company seeks to avoid full closures.
Industry analysts suggest that the 100,000 figure may be a negotiating tactic, and the actual job losses could be lower. Widespread protests occurred ahead of a VW supervisory board meeting that included managers and labor representatives.
