Volkswagen will further intensify its cost-cutting measures.
Image: VW
Volkswagen plans to accelerate its restructuring program while thousands of German auto workers protest against job cuts and potential plant closures. According to Automotive News, the brand’s chief Thomas Schaefer said at a staff meeting at the company’s headquarters in Wolfsburg that the measures agreed upon in 2024 were not sufficient. “We absolutely have no time to lose, so we will significantly intensify our efficiency program,” the executive was quoted as saying.
Volkswagen Group lowered its forecast for the margin in 2026 to 1 percent after accounting for costs of 10 billion euros related to its stake in Porsche, the Chinese market, and severance payments for employees. Previously, VW had targeted a margin between 4 and 5.5 percent. In September, the group cited the weak Chinese market, higher provisions for retirement benefits, and lower business expectations for Porsche as reasons for the reduction.
As part of a restructuring agreed upon with stakeholders, VW plans to cut another 50,000 jobs. Overall, the group has outlined plans that could ultimately affect around 100,000 positions worldwide. Schaefer announced that the company and employee representatives would discuss further steps to take.
European automakers are facing increased competition from Asian rivals both domestically and internationally. Volkswagen is also confronted with overcapacity in Europe, U.S. tariffs, and declining profits in China. Another issue is the accelerating demand for less profitable electric vehicles.
Horst Ott from the IG Metall union told Reuters that most managers have failed to keep up with developments in electric mobility, digitalization, and battery technology. IG Metall leader Christiane Benner called on company executives and management to take responsibility for Germany as an automotive hub, as well as for workers and jobs. The unions reiterated their demand that management address the existing problems.
According to the industry association VDA, Germany’s automotive sector has lost around 100,000 employees since 2019, with further cuts expected. In the automotive supply industry, approximately 74,000 jobs were lost between 2019 and 2025—nearly a quarter of its workforce, according to the figures.
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Thomas Langenbucher is an expert in electromobility with experience in the automotive and financial industries. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.
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