Berlin – The German Volkswagen Group plans to eliminate approximately 50,000 additional jobs worldwide as part of a broad plan to reduce expenses and improve competitiveness. This brings the total target for job reductions to 100,000, amid growing pressures facing the European automotive industry.
A New Plan for Job Reductions
The group’s CEO, Oliver Blume, stated that the upcoming phase aims to reduce overhead costs to more competitive levels, explaining that about half of these expenses are linked to personnel costs. This makes workforce reduction one of the available options if operating costs do not change. This step comes in addition to around 50,000 jobs the company previously began cutting within Germany under an agreement reached with trade unions during 2024.
Labor Protests and Factory Closure Fears
The new plans sparked a wave of protests organized by the workers’ union at several of the company’s sites last week, following reports of accelerating job cuts and the potential closure of four factories in Germany. Blume emphasized that he prefers to resort to “smart solutions” rather than closing factories, but noted that he cannot guarantee the continued operation of the four facilities over the next decade given the challenges facing the group.
Market Pressures and Chinese Competition
Volkswagen faces intensifying pressures resulting from US tariffs, declining profit margins in the electric vehicle sector, and fierce competition in the Chinese market, the world’s largest automotive market. The group, which includes prominent brands such as Porsche, Audi, and SEAT, is seeking to implement a cost-restructuring program in coordination with the supervisory board. This comes at a time when the company expects strong opposition from unions, which criticized the group’s management for the anxiety caused by leaks regarding the job cut plans, demanding an official clarification of the company’s stance.
