VW's CEO confirms it could cut another 50,000 jobs, taking the total towards 100,000
The scale of Volkswagen's crisis just got clearer, and grimmer
When we reported that Volkswagen might cut up to 100,000 jobs, it was still framed as reports and negotiations. Now the company's own CEO has effectively confirmed it. Oliver Blume has told staff that a further 50,000 roles could theoretically go, on top of the 50,000 already agreed, laying bare just how deep the crisis at Europe's largest carmaker runs.
From reports to confirmation
In an internal memo, Blume said that another 50,000 jobs could "theoretically" be eliminated, while the company still evaluates the "actual necessity and feasibility" across its global regions and brands. Combined with the roughly 50,000 cuts agreed with unions in late 2024, that points towards a total reduction approaching 100,000 roles, the very figure earlier reports had suggested and which VW had not, until now, put its own name to.
Why it is happening
The reasoning is blunt. Blume points to a roughly 20% cost disadvantage against competitors, on top of falling profits driven by tariffs, fierce Chinese competition and stubbornly low productivity at some German plants. The sites whose long-term future looks most uncertain are the familiar ones: Neckarsulm, Zwickau, Hannover and Emden, several of which are central to VW's electric ambitions.
Some unexpected alternatives
More surprising were the alternatives Blume floated to outright closures. Rather than simply shutting underused factories, he raised the idea of repurposing them for defence-sector production, or using them to assemble Chinese-designed Volkswagens for the European market. Both are striking suggestions, and a sign of just how creatively VW is having to think to keep its German plants alive in some form.
Unions are pushing back hard
None of this is settled. Worker representatives have already rejected the restructuring proposals involving job cuts and possible factory closures in recent board meetings, setting up what will be a tense and drawn-out negotiation. In a country where unions and works councils hold real power, VW cannot simply impose cuts on this scale, and the coming talks will be fraught.
AutoNext Take
There is no way to dress this up: it is genuinely bad news, and behind every one of these numbers is a real person and a real family. Hearing the CEO himself put a potential 100,000 job losses on the table, rather than leaving it to leaks and speculation, makes the severity of Volkswagen's situation impossible to ignore. It follows hard on the heels of a rough set of Porsche sales figures, and confirms that Europe's flagship car group is in serious trouble.
If there is any faint silver lining, it is that Blume appears to be looking for ways to keep plants open, even if that means building defence equipment or Chinese-designed cars, rather than reaching straight for closures. Whether that is enough to satisfy the unions, and to save tens of thousands of jobs, is the question that will define the next chapter of this story. We will be following the negotiations closely.
