Volkswagen plans to cut 100,000 jobs by the end of the decade, according to an agreement reached between management and unions announced on Sept. 3, 2026. The restructuring represents the largest workforce reduction in global automotive history, amounting to roughly 15 percent of the carmaker’s global staff and eclipsing the 50,000 job cuts made by General Motors following its 2009 bankruptcy.
Restructuring Scale and Economic Pressures
The 10-brand group, which includes Audi and Porsche alongside the Volkswagen namesake, approved a plan to slash an additional 50,000 jobs on top of another 50,000 positions previously agreed upon. According to company statements reported by Agence France-Presse (AFP), the reductions are necessary to align workforce levels with current economic realities. Europe’s largest carmaker faces mounting pressure from United States tariffs, sluggish demand for electric vehicles, and intense competition within and from the Chinese market.
The total job losses will span multiple facilities and impact suppliers tied to the automaker’s supply chain. Martin Lehmann, an employee at the Zwickau facility since 2012, told AFP that the plant and its surrounding network of suppliers act as the motor of the entire region.
Uncertain Future for German Plants
Management and labor representatives agreed that the long-term future of four German manufacturing plants—located in Hannover, Emden, Zwickau, and Neckarsulm—cannot be guaranteed into the 2030s, according to AFP. If closures proceed, it will mark the first time Volkswagen has shuttered full-scale factories in its home country. However, company officials noted that alternative uses for these sites are currently under evaluation.
The supervisory board, which comprises an equal split of labor and shareholder representatives, unanimously approved the executive board’s future plan. Chief Executive Officer Oliver Blume called the approval a strong signal for the future of the Volkswagen Group in a statement covered by AFP.
Labor Negotiations and Governance Changes
Prior to the agreement, tensions flared between unions and management after initial figures regarding the 100,000 potential job cuts leaked to the media before internal communication occurred. A report by business weekly WirtschaftsWoche regarding potential strategies to circumvent the supervisory board triggered strong pushback from the IG Metall union, whose representatives labeled the idea inappropriate.
To resolve the deadlock, the supervisory board directed the executive board to develop a model for an evolved decision-making and group structure, adjusting approval thresholds to align with standard corporate practices. Under Germany’s 1960 privatization law for Volkswagen, two-thirds of the supervisory board must approve plant establishments or relocations, giving labor representatives holding half the seats significant influence.
In a joint statement, IG Metall union and Volkswagen supervisory board members Christiane Benner and Daniela Cavallo, alongside representatives from the state of Lower Saxony—a major shareholder hosting six plants—noted that the compromise successfully prevented a dangerous escalation. They emphasized that no plant closures had been formally approved and no facilities were abandoned.
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