Last Update: 26.06.2026, 15:13
VW appears to be planning a larger job cut than previously known. The company from Wolfsburg aims to eliminate 100,000 of its approximately 657,000 jobs globally. Four plants, including those in Niedersachsen, could face closure.
Among the affected facilities are the plants in Hannover and Emden. The Zwickau plant in Saxony and the Audi plant in Neckarsulm, Baden-Württemberg are also at risk. Production is set to halt entirely when the current models produced there are phased out. A corresponding restructuring plan has been presented by VW CEO Oliver Blume to executives, as reported by NDR.
New VW Cost-Cutting Strategy: An Additional 50,000 Jobs Affected
With the new cost-cutting measures, VW doubles its initial job reduction goals. Initially, it was known that Volkswagen planned to operate with 50,000 fewer jobs by 2030. This job reduction discussion was agreed upon with trade unions at the end of 2024. Job security at German sites until 2030 has been established with IG Metall, ensuring no layoffs due to operational reasons during this period.
Betriebsrat Criticizes “Irresponsible Threats”
The workforce has immediately announced resistance to the new cost-cutting plans. The VW works council described these as “irresponsible threats.” In a joint statement, Christiane Benner, the first chair of IG Metall; Daniela Cavallo, head of the VW works council; and Thorsten Gröger, district manager of IG Metall Niedersachsen and Sachsen-Anhalt, stated that if the plans proceed, they would be resisted with full force.
VW Spokesperson: Board Is Working on a New Corporate Strategy
VW declined to comment directly on the cost-cutting concept at a recent press briefing. They noted the document to be confidential, under discussion in relevant committees. However, a spokesperson confirmed that the company’s board has been diligently working on a future plan for restructuring the company in recent months.
Will the Supervisory Board Approve the Plans?
How jobs will be cut within the VW group remains uncertain. According to “Manager Magazin,” the plans are set to be reviewed in the supervisory board meeting on July 9. The acceptance of these plans is not guaranteed, as employee representatives make up half of the board and, together with the two representatives from Lower Saxony, hold a majority. The state holds a 20 percent stake in VW.
Statement from Lies and Hamburg
“The state of Lower Saxony will not approve any development that resorts to plant closures as a seemingly simple solution or calls into question proven co-determination,” stated Prime Minister Olaf Lies (SPD) and deputy Julia Willie Hamburg (Greens). Both sit on VW’s supervisory board. They further mentioned that the company’s future cannot rely on continuous plant closures or larger job cuts.
Comprehensive Transformation as a Goal
A VW spokesperson pointed to the significant challenges faced by the automaker. The current business model, developing cars in Germany, producing in Europe, and exporting worldwide, is no longer functional for all brands. The focus now is to make the company as a whole more efficient and lean while systematically utilizing technological synergies.
The Company Long in Crisis
Volkswagen’s economic troubles have been escalating recently. At the end of April, the company reported a massive decline in profits, mainly due to high costs, US tariffs, and issues in the crucial Chinese market. 2026 will not be an easy year for VW, with analysts emphasizing the necessity for the company to continue developing attractive models.
