Volkswagen plans up to 100,000 job cuts and plant closures amid cost crisis

Volkswagen could eliminate up to 100,000 jobs worldwide as part of a sweeping restructuring to address a 20% cost disadvantage versus rivals, CEO Oliver Blume told staff in an internal memo. The plan—which also includes closing four German plants and halving the model lineup—was blocked by the company's supervisory board, highlighting deep tensions between management and labor.

What is planned

Blume's memo outlines a "theoretical deduction" of 50,000 additional job cuts on top of 50,000 already agreed for Germany through 2030 Source: El Mundo. The group aims to reduce annual production capacity to 9 million vehicles, down from around 12 million pre-pandemic Source: Euronews. The model range will be cut by 50%, and the number of variants by up to 75% Source: Infobae.

Workers' opposition

The supervisory board, where labor and the state of Lower Saxony hold significant sway, voted 12-7 against management's restructuring proposal Source: Euronews. Union IG Metall staged protests. Blume has since sought "smarter solutions than closing plants," such as converting factories for defense production or building Chinese-brand cars in Europe Source: AP News. However, he admitted that no competitive use cases have been confirmed for the Emden, Hannover, Zwickau, and Neckarsulm plants beyond 2030 Source: El Mundo.

Impact on Spain

Volkswagen's Spanish factories in Martorell and Landaben face uncertainty. The union at Seat warns it would be "naive to think it won't affect us" Source: El Español. While Spanish energy costs provide some advantage, the group's shift toward more profitable models could threaten plants that build smaller vehicles Source: El Español.