Volkswagen to Slash Up to 100,000 Jobs Amid Profit Crisis

Sun Sep 13 2026 21:35:21 GMT+0000 (Coordinated Universal Time)

VW CEO reveals doubled job cut proposal as automaker faces steep profit declines and fierce competition from Chinese rivals.

Volkswagen’s chief executive announced plans to cut up to 100,000 jobs worldwide, a move that doubles the earlier 50,000‑post proposal. The bill of reasons includes sharp profit drops, weak sales in China and the United States, and the costs of running several expensive electric‑vehicle plants in Germany. While the exact cuts are still being assessed, the company has agreed to earlier reductions of 35,000 jobs at the VW brand and 15,000 at other marques. Protests and union negotiations are already underway, and analysts suggest the final figure may be lower than the headline number.

Volkswagen to Slash Up to 100,000 Jobs Amid Profit Crisis

The chief executive of the German car giant Volkswagen Group has confirmed it is looking to cut up to 100,000 jobs – twice as many as previously stated.

The group, which includes Porsche, Audi, Seat and Skoda, had previously said it would axe some 50,000 posts in Germany by 2030.

Volkswagen suffered a steep decline in profits last year – driven by falling sales in key markets and increasing competition from Chinese brands moving into Europe.

In a widely‑reported memo to staff, chief executive Oliver Blume said the Group’s costs were 20% higher compared to rival businesses, and it would need to reduce its outgoings even further.

This, he said, would mean a theoretical loss of 50,000 jobs worldwide.

"We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible," he added.

"We need to become more efficient, more robust and simpler. We must reduce our costs," he continued.

He also noted the company had been "unable to confirm" alternative uses for four factories in Germany, previously threatened with closure.

Two of the plants, in Zwickau and Emden, produce electric cars, but, alongside others in Hanover and Neckarsulm, are seen as expensive to run.

Volkswagen’s operating profit fell sharply from €22.6 bn in 2023 to €8.9 bn last year.

The group has been badly hit by a fall in sales in China – a once‑lucrative market – dropping 26% in the first half of the year.

In the US, sales fell more than 7%, partly due to tariffs on car imports introduced during the Trump administration.

Meanwhile Chinese brands aggressively expand internationally, offering new technologies at lower production costs.

This added pressure on established brands to keep costs under control, reducing profit margins.

In late 2024, after threats of mass strikes, VW reached an agreement with the German trade union IG Metall to cut 35,000 jobs at its namesake brand by 2030, with another 15,000 jobs across other brands.

The current proposals appear to go far further.

Last week saw widespread protests at Volkswagen sites across Germany ahead of a supervisory‑board meeting that includes labour representatives and company managers.

Some industry analysts suggested VW deliberately publicised the figure of 100,000 as a negotiating tactic, implying the final number may be lower.