A major car firm is set to slash 100,000 jobs in a matter of months following reports it would cut 50,000. The doubling of jobs to be scrapped by Volkswagen comes as the company suffered a steep decline in profits over the course of 2025.
Chief executive Oliver Blume confirmed that not only would there be 100,000 job losses but that the Volkswagen Group’s operating cost is 20% higher compared to rival businesses. Reducing its outgoings even further after the job cuts is expected.
He said: “We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible. We need to become more efficient, more robust and simpler. We must reduce our costs.”
Blume added that the effect this would have on employees is understood by the board. He said: “I can fully understand how deeply the current situation affects people within the company, as well as everyone in its immediate circle. I have spent my entire professional life with the group.”
In 2023, the company made an operating profit of €22.6bn ($25.8bn, £19.3bn). This dropped to €19.1bn in 2024, and then to just €8.9bn last year. Sales are down in major markets including China and the United States, BBC News reported, with tariffs in the US and Chinese brand dominance cited as reasons for this decline.
In late 2024 VW reached an agreement with the German trade union IG Metall to cut 35,000 jobs at its namesake brand by 2030, in a “socially responsible manner”. Another 15,000 jobs to go at its other brands was also confirmed at the time.
Those plans appear to have been amplified by VW executives who confirmed 100,000 job losses globally.
Widespread protests were mounted earlier this week ahead of a VW supervisory board meeting which included company managers and labour representatives.
Industry analysts suggest that the group had publicised the number of 100,000 job cuts as a negotiating tactic and believe the actual job loss figure will be somewhat lower than this.
Blume added that “smart solutions are always better than closing a plant” as the company looks to avoid the full closure of four factories earmarked for closure. The four factories include Emden, Hanover, Zwickau, and the Audi plant Neckarsulm.