Volkswagen CEO Oliver Blume. (Krisztian Bocsi\/Bloomberg)<\/p>\n
\n June 26, 2026 11:00 AM, EDT<\/p>\n
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\nVolkswagen CEO Oliver Blume reportedly proposed doubling job cuts to as many as 100,000 and closing four German factories.The cuts aim to lower overhead by 11 billion euros by 2030 amid tariffs, China weakness and rising competition.Blume plans to present the strategy to Volkswagen\u2019s supervisory board next month, with labor leaders already pledging opposition. <\/p>\n
Volkswagen AG is looking to cut tens of thousands of additional jobs and may shutter factories in a push by CEO Oliver Blume to make Europe\u2019s biggest automaker more competitive, Manager Magazin\u00a0reported.<\/p>\n
The plans, presented by the CEO during a management board meeting earlier this week, include doubling staff reductions to as many as 100,000, Manager Magazin reported June 26, citing people familiar with the matter. The Porsche and Audi owner currently employs around 657,000 people.\n \t \t\t<\/p>\n
Blume has been trying to slim down Volkswagen<\/a> as it grapples with U.S. tariffs<\/a>, persistent weakness in China and mounting competition in Europe from rivals including BYD Co. and Stellantis NV. His new strategy will be presented to the supervisory board next month and likely marks the opening position in what could be months of tense negotiations.\u00a0<\/p>\n At VW, restructuring often gets watered down by labor leaders and state politicians that together have a blocking majority in the body.\n \t\t<\/p>\n Volkswagen\u2019s streamlining efforts underscore the German industry\u2019s broader struggles. Mercedes-Benz Group AG plans to\u00a0discuss deeper cost cuts\u00a0with labor representatives, while BMW AG earlier this month issued a drastic profit warning that sent its shares tumbling.<\/p>\n Blume\u2019s renewed push involves cutting general overhead costs by 11 billion euros ($12.5 billion) by the end of this decade and closing four German factories in the medium term, the magazine said. They include an Audi site in Neckarsulm as well as VW plants in Hanover, Zwickau and Emden.\u00a0<\/p>\n He\u2019s also considering separating components plants and, crucially, the namesake VW brand to make the group leaner, the report said. The nameplate has long struggled with low profitability.<\/p>\n Volkswagen \u201cmust undergo profound change,\u201d said a company spokesperson, declining to comment on the specifics of the Manager Magazin report. The executive board \u201chas been working intensively over the past few months on a future-oriented plan to realign the company.\u201d<\/p>\n Volkswagen shares rose as much as 1.2% in Frankfurt. The stock is still down a quarter this year.<\/p>\n Kevin Clark of Cox Fleet discusses how fleets should rethink their maintenance strategies to stay efficient and resilient.\u00a0Tune in above or by going to RoadSigns.ttnews.com<\/a>.\u00a0\u00a0<\/p>\n![\"RoadSigns\"](\"https:\/\/www.europesays.com\/germany\/wp-content\/uploads\/2026\/05\/RoadSigns-generic.jpg\"\/)
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