German automotive giant Volkswagen is considering one of the largest workforce reductions in the industry’s history, with plans that could see up to 100,000 jobs cut worldwide as the company battles rising costs, U.S. tariffs, weaker electric vehicle margins and intensifying competition from Chinese manufacturers.
Volkswagen CEO Oliver Blume confirmed in an internal memo that the company is evaluating an additional 50,000 job cuts, on top of roughly 50,000 reductions already planned across Volkswagen, Audi, Porsche and its software division, Cariad. If implemented, the total would represent around 16% of Volkswagen’s global workforce, making it one of the most significant corporate restructuring programs ever undertaken by a carmaker.
The restructuring is part of Volkswagen’s broader effort to close what management describes as a 20% cost disadvantage compared with key rivals. Alongside workforce reductions, the company is reviewing factory operations, production capacity and its vehicle lineup, while exploring alternatives to plant closures, including repurposing some facilities for other industrial uses.
The proposals have been met with strong resistance from labor representatives, particularly Germany’s powerful IG Metall union, which has vowed to oppose any compulsory layoffs or factory closures. Further discussions between management and employee representatives are expected as Volkswagen seeks to reshape its operations for a rapidly changing global automotive market.
