VW apparently planning cuts of up to 100,000 jobs and closure of four plants in Germany

According to the reports, the affected plants would be the VW facilities in Hanover and Emden (Lower Saxony), Zwickau (Saxony), as well as the Audi site in Neckarsulm (Baden-Württemberg). These four locations face "medium-term" closure, it was said. The group would thereby withdraw from large parts of Germany.

A VW spokesperson confirmed in principle that the group board of management had "worked intensively over the past months on a future plan for the realignment of the company." The goal was a "comprehensive transformation." At the same time, he stressed: "Es geht darum, das Unternehmen insgesamt effizienter und schlanker aufzustellen sowie technologische Synergiepotenziale konsequent zu nutzen."

The "Target Picture 2030" and the role of the board

The plans are part of the so-called "Target Picture 2030" ("Zielbild 2030") that Blume presented to the group board of management. A spokesperson added: "Der gesamte Konzern – inklusive Marken und Gesellschaften – muss sich tiefgreifend verändern." However, he pointed out that the final decisions must be made in the responsible bodies: "Die zugrunde liegenden Sachverhalte werden in den zuständigen Gremien besprochen und verabschiedet. Diesem Prozess werden wir nicht vorgreifen."

VW had previously announced the elimination of 50,000 jobs group-wide by 2030, 35,000 of them at the core Volkswagen brand. According to the latest figures, 28,000 employees have already agreed to leave. The figures that have now leaked would significantly exceed these plans.

The group's economic situation

The group's economic situation is strained: in 2025, operating profit fell by 53 percent compared to the previous year. The software subsidiary Cariad still recorded losses of 2.2 billion euros in 2025. These developments are seen as the background for the cost-cutting plans that have now become known.

Employees at the German sites are currently protected by a job security agreement (Beschäftigungssicherung) negotiated with IG Metall at the end of 2024. This agreement runs until 2030, excludes redundancies due to operational reasons until the end of 2030, and also guarantees the preservation of the larger plants.

Job security and IG Metall's resistance

Should the group management actually pursue plant closures, this would not be easily reconciled with that agreement. IG Metall and the VW works council have already announced resistance. In a joint statement, they said: "Die erneuten Medienberichte verunsichern unsere Belegschaft und unsere Standortregionen zu Recht. Sollten solche Pläne vorangetrieben werden, würden wir sie mit aller Macht verhindern."

A VW unionist referred to the planned cuts as a "brutaler Kahlschlag" ("brutal clear-cutting"). The mood among employees is tense, especially since the reports about the full extent of the cuts only reached the public through leaks from within the company.

The final word now lies with the VW supervisory board, which is convening on 9 July. Only after this meeting will it likely become clear which of the rumored measures are actually to be implemented. Until then, the concept remains non-binding, even though the reports originate from within the group itself.

Political reactions from the federal government and the states

The plans are highly controversial politically. The state of Lower Saxony holds a 20 percent stake in VW, making radical job cuts and the closure of several plants politically undesirable. The federal government also expressed concern: a spokesperson for the Ministry of Economics stated that it was trying to "jede Schließung von Standorten in Deutschland natürlich zu verhindern".

Saxony's Minister-President Michael Kretschmer also expressed concern about the possible intensified cost-cutting plans. "Am Ende sind das doch aber Entscheidungen der Unternehmen, die sie betriebswirtschaftlich treffen müssen," said the CDU politician. At the same time, he warned: "Deutschland darf sich nicht herunterfahren." And further: "Wenn dieses Unternehmen aufgibt, dann ist das fatal für unser ganzes Land."

Macroeconomic consequences

The macroeconomic consequences of such job cuts would be significant. Carsten Brzeski, chief economist of ING Bank, said: "Das ist natürlich konjunkturell relevant, da es erneut zeigt, dass strukturelle Schwäche, Verlust an Wettbewerbsfähigkeit und Transformation letztendlich Auswirkungen auf den Arbeitsmarkt und die Realwirtschaft haben."

His colleague Holger Schmieding of Berenberg Bank stated: "Die Automobilindustrie ist und bleibt in einer Krise. Insgesamt zeigt das alles, dass es immer noch kein Ende an Hiobsbotschaften in der deutschen Industrie gibt." Brzeski added with regard to the gradual implementation: "Natürlich würden nicht auf einen Schlag 100.000 Menschen entlassen, sondern es werde unterschiedliche Formen geben. Der eine geht in Frührente und taucht gar nicht mehr in der Statistik auf, der andere meldet sich nach Abfindungen erst nach einiger Zeit als arbeitslos."

The question of compensation through other industries is also being raised. One expert put it this way: "Insgesamt kann der Ausbau der Rüstungs-, Luft- und Raumfahrtindustrie auf Dauer wahrscheinlich etwa die Hälfte der Verluste an Arbeitsplätzen und heimischer Wertschöpfung ausgleichen." Even in the best case, only part of the lost jobs could thus be compensated.