Volkswagen may eliminate up to 100,000 jobs globally, Chief Executive Oliver Blume warned in an internal memo, signaling a potential doubling of previously agreed workforce reductions. The carmaker cited a 20% cost gap with rival manufacturers, with Blume writing that a theoretical calculation based on current labor costs would require shedding around 50,000 additional positions worldwide.
The warning follows a supervisory board meeting on July 9 where labor representatives blocked restructuring proposals. Four German factories — Emden, Hanover, Zwickau, and Neckarsulm — face closure after the company failed to develop competitive programs for the sites. A late-2024 agreement with IG Metall had already committed Volkswagen to cutting 50,000 positions by 2030.
The company, whose stock has fallen more than 30% since the start of 2026, reported that sales in China dropped 26% in the first half of the year. Last week saw widespread protests at Volkswagen sites across Germany.