For the first time, the VW CEO reveals how many 10,000 jobs are at risk

Here's what it's all about

• VW CEO Oliver Blume has spoken for the first time about a possible reduction of about 50,000 jobs worldwide.
• According to Blume, the figure is based on a theoretical calculation assuming that labor costs remain unchanged.
• Several plants in Germany could also be affected, though Volkswagen is initially looking for alternatives to closures.

Summary created with

Amid the struggle over the future of Europe's largest automaker, Volkswagen CEO Oliver Blume has, for the first time, quantified the potential scope of the expected cuts.

Without any change in labor costs, this would result in the loss of approximately 50,000 jobs worldwide, he said in an internal interview on the Volkswagen intranet, which is available to the German Press Agency. The magazine “Der Spiegel” had previously reported on this.

According to Blume, this figure stems from the plan to reduce the costs of administration, infrastructure, and support for the core business to a competitive level. At Volkswagen, these costs are still 20 percent above the average for comparable companies. This means that “a theoretical calculation, assuming no change in labor costs, would result in the elimination of approximately 50,000 jobs worldwide.”

The extent of the workforce reduction has not yet been determined

Currently, all brands, companies, and regions are assessing which adjustments are “necessary and feasible.” Personnel costs are determined not only by the number of employees but also by labor costs. “We must also pull this lever,” he said, implying that the exact extent of the workforce reduction has likely not yet been determined.

Volkswagen had already announced that it would cut 50,000 jobs across the group in Germany by 2030. 35,000 jobs are to be cut at the core brand, with the remainder at subsidiaries such as Audi and Porsche. More than 37,000 employees have already signed the relevant agreements, and around 27,000 employees are expected to have left the company by the end of the year, Blume said.

Blume: Smart solutions are better than plant closures

These remarks come just a few days after Thursday’s supervisory board meeting, at which, according to a media report, Blume is said to have failed to push through a more extensive cost-cutting package. Initially, the specifics of the rejected plan were known only from media reports—which indicated that up to 100,000 jobs could be cut worldwide, with some reports even mentioning 120,000. Four VW Group plants in Germany could also be at risk of closure: Hanover, Emden, Zwickau, and the Audi plant in Neckarsulm.

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“Excess capacity costs money,” Blume said on the VW intranet regarding possible plant closures. He added: “The truth is also that, as of today, we cannot yet confirm competitive utilization rates for the Emden, Hanover, Zwickau, and Neckarsulm plants in the 2030s.” What matters to him is this: “Smart solutions are always better than closing a plant.”

Alternative solutions are being considered

It is encouraging that Volkswagen’s manufacturing costs at its German sites fell by 20 percent last year alone—this points in the right direction, said the CEO. Alternative solutions are also being explored; for example, Volkswagen is “in advanced talks” with companies from the defense industry regarding the Osnabrück site. He emphasized: “It is important to us to secure jobs.”

Previously, the powerful works council at Volkswagen had identified a significant loss of confidence among the workforce. A spokesperson for the works council said on Sunday that a situation had arisen that was difficult to bear for employees, suppliers, service providers, and entire regional communities that depended on Germany’s largest industrial conglomerate: “Especially for our more than 40,000 colleagues at the five locations—Emden, Hanover, Neckarsulm, Osnabrück, and Zwickau—which have been publicly identified for weeks now, and whose impending closure has been dominating the headlines for weeks, this situation is simply no longer bearable.”

Hanover's Mayor Calls for a Commitment to the City

Hanover’s Mayor Belit Onay insisted that Volkswagen must always remain committed to Germany as a business location. “In light of international competition, it’s absurd to even consider sending highly qualified employees home and phasing out state-of-the-art factories,” the Green Party politician said in response to a question from the German Press Agency.

In Emden, Mayor Tim Kruithoff said he had already made it clear on the day of the supervisory board meeting that Volkswagen “must develop creative and intelligent solutions instead of repeatedly discussing plant closures or a gradual downsizing of locations.” For Emden, he expects “a long-term outlook with new products, new tasks, and further investments.” The independent politician emphasized: “The employees have supported the transition to electric mobility; they have done their part and deserve respect.”

Sebastian Lechner, chairman of the CDU caucus in the Lower Saxony state parliament, made it clear: “Volkswagen has a special connection to Lower Saxony and its people. That is why preserving the Lower Saxony locations and ensuring their long-term viability is our top priority as state policymakers.” He called for a swift, clear, and binding plan for the future: “Volkswagen needs competitive products, more efficient structures, and concrete investment prospects for its plants.”