Volkswagen faces up to 140,000 job cuts and model reductions in cost‑saving drive

Volkswagen Group is preparing a sweeping cost‑saving program that could eliminate between 100,000 and 140,000 jobs across the company. An internal memo from CEO Oliver Blume confirmed a first wave of 50,000 positions already approved, with another 50,000 under review and a further 40,000 potentially at risk after 2030. The cuts target factories in Germany—including Wolfsburg, Emden, Hannover, Zwickau and Audi’s Neckarsulm plant—and could affect sites worldwide.

The plan also aims to boost the return on capital from about 3 % to 8‑10 % by halving the model portfolio. Up to half of Volkswagen’s vehicle line‑up may be dropped, with models such as the VW Polo, Škoda Fabia, Audi Q5 Sportback, Porsche Taycan and others listed as candidates for removal.

Workers at Volkswagen, Porsche and Mercedes staged protests in Stuttgart, Stuttgart‑Zuffenhausen and other locations, organized by IG Metall. Union leaders warned that “solidarity wins” and called the actions the start of a long battle over jobs and wages. Politician Boris Rhein publicly rejected direct state aid for Volkswagen, arguing that market forces—not government subsidies—should determine the future of combustion engines.

Regional ministers in Saxony suggested using higher EU tariffs on Chinese cars to protect German plants, while the VW share price slipped modestly on the news. The combined impact of massive layoffs, model cancellations and political debate marks the deepest restructuring challenge the German automaker has faced in recent years.