Volkswagen proposed cutting up to 100,000 jobs and flagged four German plants for possible closure amid cost pressures
Jul 9, 2026In July 2026, Volkswagen CEO Oliver Blume proposed cutting up to 100,000 jobs globally, doubling a previously announced 50,000-job reduction target, citing a roughly 20% cost disadvantage versus competitors, tariff costs, and intensifying competition from Chinese automakers. An internal memo stated the company 'cannot confirm competitive use cases' for four German plants (Hanover, Zwickau, Emden, and Audi's Neckarsulm facility) in the 2030s. Labor representatives on VW's supervisory board blocked the proposals at a July 9, 2026 meeting, and IG Metall union head Christiane Benner vowed to 'stop them with all our might,' citing a late-2024 agreement to avoid German factory closures and compulsory redundancies through 2030. As of the announcement, the cuts remained proposals under negotiation rather than finalized decisions.