Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeAutosWorkVW eyes cutting 100,000 jobs and closing plants, report saysVolkswagen’s streamlining efforts underscore the German industry’s broader strugglesAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Pushing through job cuts at Volkswagen is difficult, as worker representatives occupy half the seats on the carmaker’s supervisory board. Photo by DAVID HECKER/AFP via Getty ImagesVolkswagen AG is looking to cut tens of thousands of additional jobs and may shutter factories in a push by chief executive Oliver Blume to make Europe’s biggest automaker more competitive, Manager Magazin reported.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe 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 Friday, citing people familiar with the matter. The Porsche and Audi owner currently employs around 657,000 people.Blume has been trying to slim down Volkswagen as it grapples with United States tariffs, 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. Oliver Blume Photographer: Krisztian Bocsi/BloombergFP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try againAt VW, restructuring often gets watered down by labour leaders and state politicians that together have a blocking majority in the body.Volkswagen’s streamlining efforts underscore the German industry’s broader struggles. Mercedes-Benz Group AG plans to discuss deeper cost cuts with labour representatives, while BMW AG earlier this month issued a drastic profit warning that sent its shares tumbling.Blume’s renewed push involves cutting general overhead costs by €11 billion (US$12.5 billion) by the end of this decade, as well as 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.He’s 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.Volkswagen “must undergo profound change,” said a company spokesperson, declining to comment on the specifics of the Manager Magazin report. The executive board “has been working intensively over the past few months on a future-oriented plan to realign the company.”Volkswagen shares rose as much as 1.2 per cent in Frankfurt. The stock is still down a quarter this year.The CEO has already made some progress, including by selling a 51 per cent stake in its Everllence marine-engine unit to raise cash. Some 28,000 workers have agreed to leave VW, part of an already communicated push to reduce 50,000 workers across the group by 2030. VW has also whittled down its production capacity from 12 million vehicles a year toward a more realistic nine million. The Volkswagen logo Photographer: Michaela Stache/BloombergLabour leaders were swift to push back against the new plans. They “unsettle our workforce and the regions where we operate,” according to a joint statement from the company’s works council and the IG Metall union. “Should such plans be pursued, we would oppose them with all our might.”Pushing through job cuts at Volkswagen is difficult. Worker representatives occupy half the seats on the carmaker’s supervisory board, and the German state of Lower Saxony — which tends to side with unions — has another two seats.VW “has suffered from years of neglect in readjusting workforce numbers due to the stranglehold the regional government and trade unions,” said Matthias Schmidt, an independent auto analyst based near Hamburg. Competition from Chinese manufacturers “is hitting the German giant hardest.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.