Volkswagen Job Cuts: Emden and Hannover Plants at Risk of Closure

The plants in Hannover and Emden could be affected, along with facilities in Zwickau (Saxony) and Audi’s plant in Neckarsulm (Baden-Württemberg). Once the current models produced there are phased out, production is expected to be completely halted. This restructuring plan has reportedly been presented by VW CEO Oliver Blume to executives according to NDR information. Initially, this was reported by the Manager Magazin, citing insider sources.

New VW Cost-Cutting Program: Additional 50,000 Jobs Affected

With these cost-saving plans, VW is doubling its previous job-cutting targets. It was previously known that Volkswagen planned to reduce its workforce by 50,000 by 2030. This job reduction was agreed upon with unions at the end of 2024. Employment security has been established at German sites until 2030, in agreement with IG Metall, meaning that no operational layoffs are allowed at VW until then. Except for Osnabrück, no sites may be closed as per the collective agreement until that time. The last vehicle bearing the VW logo is expected to roll off the assembly line in Osnabrück by mid-2027.

Works Council Criticizes “Irresponsible Threats”

The workforce immediately announced resistance to the new cost-saving plans. The VW Works Council described the plans as “irresponsible threats,” as stated in a joint statement by Christiane Benner, the first chairperson of IG Metall, Daniela Cavallo, chairperson of the VW Works Council, and Thorsten Gröger, regional director of IG Metall Niedersachsen and Sachsen-Anhalt. If these plans proceed, employee representatives have pledged to resist them with all their might.

VW Representative: Board Works on Restructuring

VW declined to comment directly on the cost-cutting plan on Friday, stating that it is a confidential document being discussed and approved in the relevant committees. “We will not preempt this process,” said a spokesperson. However, the spokesperson confirmed that the company’s board had been intensively working on a future plan for the restructuring of the company in recent months.

Will the Supervisory Board Approve the Plans?

How the jobs at VW will be cut remains unclear. According to “Manager Magazin,” the plans are set to be discussed in the supervisory board meeting on July 9. Whether they will be approved there is uncertain. Employee representatives make up half of the members, and together with the two representatives of the state of Niedersachsen, they constitute the majority. The state holds 20% of the voting rights in VW.

Statement from Lies and Hamburg

“The state of Niedersachsen will not approve any development that resorts to plant closures as an ostensibly simple solution or calls into question established co-determination,” stated Prime Minister Olaf Lies (SPD) and his deputy Julia Willie Hamburg (Greens) in a joint statement. Both sit on VW’s supervisory board. They added that the future of the company would not be secured by constantly “focusing on new plant closures or larger job cuts.” It is essential for Volkswagen to regain its own strength—”with competitive vehicles, innovative products, a consistent use of synergies, and a clear strategic direction.”

“Comprehensive Transformation” as a Goal

A VW spokesperson pointed to the significant challenges the Wolfsburg automaker is facing. The current business model—developing cars in Germany, producing them in Europe, and exporting them globally—is no longer sustainable for all brands. The aim is to “make the entire company more efficient and leaner while consistently leveraging technological synergies.” The goal is a “comprehensive transformation,” requiring deep changes across the entire corporation, according to the spokesperson.

Company Long in Crisis

Volkswagen has faced escalating economic problems in recent months. At the end of April, the Wolfsburg-based automaker reported a massive drop in profits. The reasons primarily include high costs, US tariffs, and challenges in the critical Chinese market.