VW Boss Blume Threatens Employees with Cutting Another 50,000 Jobs Worldwide

The threat comes in addition to the approximately 50,000 jobs already announced in 2024, which are to be cut in Germany by 2030 — including at VW, Audi, Porsche and the software subsidiary Cariid — primarily through partial retirement. As Blume detailed, 37,000 contracts have already been signed: "Wir haben bereits 37.000 unterschriebene Verträge". By the end of the year, approximately 27,000 colleagues would have left the company.

Second Phase of Job Cuts

Blume justified the new job cuts arithmetically: "Da die Hälfte der Gemeinkosten aus den Personalkosten resultiert, würde eine theoretische Ableitung ohne Veränderung der Arbeitskosten rund 50.000 Stellen weltweit ergeben". At the same time, he made clear that the number could be lower if other ways were found per employee to reduce labor costs. "Es gebe aber intelligentere Lösungen, als ein Werk zu schließen," said Blume.

Volkswagen's overhead costs were 20 percent higher than comparable companies, Blume said. "Im nächsten Schritt gehe es darum, die Gemeinkosten auf ein wettbewerbsfähiges Niveau zu bringen". In addition, there was overcapacity in Europe: "in Europa müsse noch eine Überkapazität von 500.000 Einheiten abgebaut werden" and "Man könne dort 500.000 Autos mehr bauen als nötig".

Four Plants in Germany Facing Closure

Plans to close four plants in Germany are also said to be on the table. Blume specifically named the Emden, Hannover and Zwickau sites of the core Volkswagen brand, as well as the Audi plant in Neckarsulm. "Die Wahrheit ist auch, dass wir heute für die Werke Emden, Hannover, Zwickau und Neckarsulm in den 30er-Jahren noch keine wettbewerbsgerechte Belegung bestätigen können," said the group CEO. "Zwischen 2031 und 2034 soll in den Werken die Autoproduktion auslaufen".

According to insiders, Blume's restructuring plan failed in the supervisory board the previous week due to a majority of employee and state representatives from Lower Saxony. Blume had presented the concept to the control body on Thursday. Blume rejected the impression of a stalemate: "Die Gespräche darüber kämen im Aufsichtsrat, anders als es nach Medienberichten den Anschein habe, gut voran". Negotiations between the parties are expected in the summer.

Conflict with the Works Council

The group leadership justified the fact that no details of the cost-cutting plan had been named so far with a lack of approval from the responsible bodies. Work on the concept has been underway since January. Dow Jones Newswires also had the internal interview with Blume; the report was published on July 13, 2026 at 06:11 ET (10:11 GMT).

The employee side reacted sharply. A spokesperson for the group works council said on Sunday to RTL and ntv that the quotes that had appeared in the press brought "keinerlei Klarheit und machten so alles nur noch schlimmer". The spokesperson warned: "Insbesondere für unsere mehr als 40.000 Kolleginnen und Kollegen an den namentlich seit Wochen bekannten fünf Standorten Emden, Hannover, Neckarsulm, Osnabrück und Zwickau, deren früher oder später drohendes Aus seit Wochen die Schlagzeilen beherrscht, ist dieser Zustand schlicht nicht mehr auszuhalten".

Volkswagen is considered the largest European automaker. The company had recently been under pressure due to weakening demand, competition from Chinese manufacturers and high costs in Germany. Blume pointed to progress: "Unsere Fabrikkosten in Deutschland konnten wir allein im vergangenen Jahr um durchschnittlich 20 Prozent verbessern. Ein starker Fortschritt."

Largest European Automaker Under Pressure

The threat of another 50,000 jobs worldwide intensifies the already ongoing conflict. Until now, the cuts announced in 2024 in Germany were limited to around 50,000 jobs. If the additional worldwide jobs were to be eliminated, total cuts at Volkswagen by 2030 would amount to around 100,000 employees, provided no alternative solutions are found. "Manager Magazin" had already reported at the end of June on a total of around 100,000 jobs that would be cut in the coming years and accompanied by plant closures in Germany.

Blume also left room for negotiations. He reiterated that alternatives to plant closures would take priority — such as alternative usage concepts and talks with partners. "Es gebe aber intelligentere Lösungen, als ein Werk zu schließen," the CEO repeated. A final decision by the bodies has not yet been made, according to the company.

Volkswagen emphasized that the negotiations in the supervisory board were proceeding constructively despite media coverage. "Die Gespräche darüber kämen im Aufsichtsrat, anders als es nach Medienberichten den Anschein habe, gut voran," said Blume. The group leadership announced that it would provide transparent information as soon as resolutions were available.

Outlook: Negotiations Over the Summer

The federal government and state policymakers — particularly Lower Saxony as a major shareholder and the company's headquarters — are closely monitoring developments. The employee side had repeatedly emphasized in advance that operational layoffs were excluded and that the restructuring had to take place through partial retirement, qualification and natural fluctuation. Whether this principle can still be upheld in light of the dimension now being threatened remains open.

What is certain is that the coming weeks will be decisive. The group leadership wants to have its cost-cutting package adopted by the responsible bodies. Until then, the workforce remains in uncertainty — especially at the five named sites, where more than 40,000 employees have, according to the works council, been facing a looming shutdown for weeks.

Overall, Blume's threat makes clear the profound structural change facing the European automotive industry. Overcapacities, high labor costs and competitive pressure from new manufacturers are forcing Volkswagen into a fundamental restructuring — with far-reaching consequences for employees, locations and industrial policy in Germany.