14.07.2026 11:20
Volkswagen announced that it will cut up to 50,000 additional employees globally to reduce costs. The company also lowered its annual production target from 12 million to 9 million vehicles, stating that production at some Volkswagen and Audi factories will end in the coming years. The union reacted strongly to the layoff plan.
German automotive manufacturer Volkswagen is implementing a new downsizing plan to reduce costs and increase competitiveness. Company CEO Oliver Blume confirmed plans for up to 50,000 additional layoffs in a note sent to employees.
50,000 MORE PEOPLE WILL LOSE THEIR JOBS
Blume stated that personnel costs account for approximately half of the company's overhead expenses and said that to meet industry standards, around 50,000 more positions need to be eliminated worldwide.
After Volkswagen initially reduced 37,000 positions through voluntary departures and partial retirement, it was stated that the new layoffs are also part of the restructuring plan.
PRODUCTION REDUCED TO 9 MILLION VEHICLES
As part of combating overproduction, the company will lower its annual production target from 12 million vehicles before the pandemic to 9 million vehicles.
Blume announced that production has been reduced by 2 million vehicles over the past two years, and due to intense competition in China, an additional production cut of 500,000 vehicles will be implemented there.
PRODUCTION TO END AT SOME FACTORIES
The Volkswagen CEO confirmed that production at Volkswagen factories in Emden, Hanover, and Zwickau, as well as Audi's facility in Neckarsulm, will cease between 2031 and 2034.
It was stated that the supervisory board rejected a proposal to completely close four factories, but the future of these facilities remains uncertain.
STRONG REACTION FROM THE UNION
IG Metall Union Chairwoman Christiane Benner described the layoff plans as "unacceptable" and argued that management is ignoring the concessions made by employees. Benner said there is great anger and uncertainty among workers.
Meanwhile, it was also claimed that plans to produce vehicles for the Israeli defense company Rafael at the Osnabrück factory were blocked by the Qatar Investment Fund, which holds a 10 percent stake in Volkswagen.