Volkswagen CEO Oliver Blume is aiming to cut up to 100,000 jobs and end production at four German plants in what would be the biggest overhaul in the company's 89-year history, Manager Magazin reported on Friday.The plan would also see the carmaker cut planned investment by about 15% to just over €130 billion ($148 billion) over the next five years, according to the report. Blume and Chief Financial Officer Arno Antlitz aim to fundamentally restructure the company, including spinning off the core VW brand and its parts operations into separate entities, the magazine said, citing sources.Blume is under pressure to revive the fortunes of the world's No. 2 carmaker, as it battles tariffs, Chinese competition and the costly shift to electric vehicles, which have weighed on earnings. He has pledged to trim the sprawling auto group's portfolio to focus on its core automotive business. 'FAR-REACHING' CHANGE NEEDED, SAYS VW Over the medium term, Volkswagen plans to cease production at its plants in Hanover, Zwickau and Emden, as well as at Audi's Neckarsulm site, once current vehicle models are phased out, the report added.The proposals would go beyond an existing programme to cut 50,000 jobs and come despite a 2024 agreement with unions that rules out plant closures in Germany this decade. A Volkswagen spokesperson declined to comment on "confidential documents", saying decisions would be discussed and approved by the company's governing bodies. "The entire group, including its brands and subsidiaries, must undergo far-reaching change," the spokesperson said. VW's works council and Germany's powerful IG Metall union warned they would resist any such measures, saying in a joint statement on Friday: "Should such plans go ahead, we would do everything in our power to prevent them."In its 2025 financial year, the group's global workforce was 667,164, of which close to 43% were employed in Germany, meaning the cuts would amount to about 15% of the workforce. Manager Magazin said the plans are part of Blume's 'Group Target Picture' concept for 2030 that he recently presented to the executive board and that he intends to present to the supervisory board on July 9. VW's shares were little changed in mid-morning trade, outperforming Germany's blue-chip DAX index which was down 1.1%.
Volkswagen CEO aims to cut 100,000 jobs in major overhaul, Manager Magazin reports
Volkswagen CEO Oliver Blume is reportedly planning significant changes, including potentially cutting up to 100,000 jobs globally and closing four German plants. The company also aims to reduce investments by 15% over five years. These moves come as VW faces pressure from tariffs, Chinese competition, and the costly transition to electric vehicles. A company spokesperson declined to comment on confidential matters.
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