‘Never has the risk situation been so high’ – Business News
Volkswagen plans to slash up to 100,000 jobs and halt manufacturing at 4 German plants in a sweeping cost-cutting drive that might rank amongst the largest company layoffs in historical past.
The cuts, which have been first reported by the German business every day Manager Magazin, would eradicate close to at least one in six of the automaker’s roughly 625,000 roles worldwide as Europe’s largest carmaker battles Chinese rivals, US tariffs and worsening earnings.
The plan would speed up VW’s current goal to cut 50,000 jobs in Germany by 2030 and cut back home manufacturing capability by 500,000 automobiles.
The new proposal might add one other 50,000 job cuts, a individual aware of the plan instructed the Financial Times.
Volkswagen is contemplating chopping up to 100,000 jobs and ending manufacturing at 4 plants in Germany as half of a sweeping cost-cutting overhaul. REUTERS
Production would finish at VW websites in Emden, Zwickau and Hanover, plus an Audi manufacturing unit in Neckarsulm.
“Never has the risk situation been so high,” CEO Oliver Blume instructed shareholders final week.
VW declined to touch upon the plan, telling the FT: “The underlying matters are discussed and approved by the relevant governing bodies. We will not pre-empt this process.”
The restructuring particulars are anticipated to be introduced to the company’s supervisory board on July 9.
Workers’ representatives blasted the proposal.
Europe’s largest automaker is accelerating its restructuring efforts after working revenue fell 53% in 2025. AFP through Getty Images
“Should such plans be pursued, we would oppose them with all our might,” stated works council chief Daniela Cavallo, IG Metall president Christiane Benner and Lower Saxony union boss Thorsten Groeger.
“What really matters is something else entirely: instead of engaging in blind, knee-jerk reactions, the management board should finally do its job,” they added.
VW entered 2026 below extreme stress. Although income was steady final yr, working revenue plunged 53% yr over yr as China price competitors, lower-margin EVs, restructuring prices and US tariffs hammered earnings.
The company’s working revenue fell to $10.2 billion in 2025 from $21.8 billion a yr earlier, whereas web income dropped to $7.9 billion from $14.2 billion.
VW’s China deliveries fell 8% final yr to 2.69 million automobiles, whereas battery-electric deliveries in China plunged 44.3%.
The company already closed a small manufacturing website in Dresden and has been looking for a purchaser for its Osnabrück manufacturing unit, the place manufacturing is set to run out subsequent yr.
Volkswagen’s restructuring comes as the automaker faces mounting stress from Chinese rivals, US tariffs and slowing profitability. REUTERS
Blume has stated outright manufacturing unit closures will not be his most popular route, favoring “intelligent” approaches resembling utilizing German plants to construct VW’s Chinese fashions or handing websites to different carmakers or protection corporations.
The deliberate cuts come after VW agreed to sell marine engines unit Everllence to Bain Capital in a $8.5 billion deal.
VW has focused $6.9 billion in annual financial savings by 2030 and stated prices stay “the area where we have the greatest need for action.”
The looming July 9 board presentation now units up a bruising battle between management and labor over the future of one of Germany’s greatest industrial employers.
The Post has sought remark from Volkswagen.
