Volkswagen planning to cut up to 100,000 jobs globally
BBC News 2026-07-13 16:19:15
Context: Volkswagen Group, a German car giant that includes brands such as Porsche, Audi, Seat, and Skoda, is planning to cut up to 100,000 jobs globally. The company, which had previously announced plans to axe 50,000 posts in Germany by 2030, has seen a significant decline in profits due to falling sales in key markets and increasing competition from Chinese brands. The job cuts are part of a broader effort to reduce costs and increase efficiency.
Key Facts
- Volkswagen Group's chief executive, Oliver Blume, confirmed that the company is looking to cut up to 100,000 jobs globally, which is twice as many as previously stated, and that the group's costs are 20% higher compared to rival businesses.
- The company had previously announced plans to cut 50,000 jobs in Germany by 2030, and had reached an agreement with the German trade union IG Metall to cut 35,000 jobs at its namesake brand and another 15,000 jobs at its other brands.
- Volkswagen's profits have fallen sharply in recent years, with operating profit dropping from €22.6bn in 2023 to €19.1bn in 2024, and then to just €8.9bn last year, due in part to a 26% decline in sales in China and a 7% decline in sales in the US.
- The company is considering the closure of four factories in Germany, including those in Zwickau, Emden, Hanover, and Neckarsulm, which are seen as expensive to run, and has been unable to confirm alternative uses for them.
- Volkswagen's supervisory board, which includes labour representatives as well as company managers, met amid widespread protests at Volkswagen sites across Germany, with some industry analysts suggesting that the company may have deliberately publicised the number of 100,000 job cuts as a negotiating tactic.