Volkswagen AG Chief Executive Oliver Blume told staff on 13 July 2026 that the group may need to eliminate as many as 50,000 additional jobs globally, on top of a previously agreed 50,000 reductions, as Europe's largest carmaker pursues what he described as 'the most comprehensive realignment in the company's history' [Source: The Guardian]. The internal memo, which effectively confirmed for the first time that Volkswagen is looking to reduce up to 100,000 positions in total, frames the additional cuts as a 'theoretical deduction' stemming from a calculated cost disadvantage of approximately 20% versus comparable companies. Blume said the restructuring proposal spans 12 initiatives, approximately 150 pages and 45 individual resolutions.
The memo also disclosed that Volkswagen's supervisory board had rejected a proposal that included the closure of four German factories. Labour representatives on the board blocked the plan, which had encompassed job cuts alongside the possible closures. Blume told staff: 'As of today, we still cannot confirm competitive use cases for the plants of Emden, Hanover, Zwickau and Neckarsulm in the 2030s' [Source: Reuters], while expressing a preference for 'intelligent solutions' to outright closures, having previously pointed to the defence industry or the production of Chinese Volkswagen models in Europe as options for underutilised facilities. He added that the company is currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible.
The announcement followed nationwide protests held by trade union IG Metall, with the works council also outlining its objections over the preceding weekend. Volkswagen employs over 657,000 people worldwide, and the additional 50,000 potential positions come on top of a similar amount agreed as part of a cost-savings effort launched in 2024, which included cuts across subsidiaries Porsche AG and Audi AG. Preferred shares (VOW3.DE) closed at €72.35 on 13 July 2026, down 1.3% on the day. The group's next earnings release is scheduled for 24 July 2026.
VW has faced a steep fall in profits amid billions of euros in tariff costs and stiff competition in China, pressures that have also weighed on competitors including Stellantis, BMW and Mercedes-Benz. Blume said last month that the company's business model of developing and exporting cars from Germany was no longer viable. The group recently sold a 51% stake in its ship engine unit Everllence, generating proceeds of approximately 7.4 billion euros, and Blume has flagged VW's portfolio of more than 2,000 stakes and businesses as 'an important area for change' [Source: Bloomberg].
Sources: Bloomberg, The Guardian, Reuters, BBC Business, Brecorder, Daily Sabah, Stockopedia, TradingView, Transport Topics