Volkswagen could axe thousands of additional staff under radical plans to make the company’s workforce smaller and amend production patterns.
CEO Oliver Blume is expected to speak with workers today regarding the company’s restructuring plans, which could lead to 100,000 job losses.
Mr Blume and Volkswagen brand chief Thomas Schäfer are expected to speak at the company’s Wolfsburg factory as part of town hall gatherings over the coming days.
Bloomberg reported that Volkswagen is aiming to cut up to 100,000 jobs and boost VW’s prospects, especially when compared with Chinese competitors, which have surged in recent years.
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Despite this, Volkswagen’s labour leader warned that worker confidence in CEO Oliver Blume had been damaged, although the relationship was “not beyond repair”.
Speaking to workers at the Wolfsburg plant earlier today, Daniela Cavallo said German factories, which are at risk of closure, were an “integral part” of the company.
She said: “Our trust in this company’s executive board, and especially in its CEO Oliver Blume, has been damaged. Not yet beyond repair, but damaged nonetheless.”
Earlier this week, workers criticised VW’s “disastrous” communication in an employee-wide survey, according to AFP.
The latest financial data from the Brand Group Core shows that the combined volume brands of the VW Group recorded an operating result of €3.61billion (£3.09billion) in the first half of 2026.
This was a 4.5 per cent rise compared to the same period last year, while its year-on-year operating margin improved to 4.9 per cent.
Commenting on the results, Mr Schäfer highlighted that geopolitical crises and “far-reaching market upheavals” continue to impact businesses.
He added: “Clear responsibilities, slimmer management bodies and optimised cooperation in the fields of production, procurement and development.
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“We know that the global challenges will continue to grow – we can therefore only be successful through consistent cooperation and leveraging synergies.”
AFP reported that Mr Blume described the predicament faced by Volkswagen as “more than critical” in a stark assessment.
While VW has not confirmed any plant closures yet, the brand has previously warned that certain plants were unlikely to become profitable in the 2030s.
These include plants in Emden, Hannover, Zwickau and Neckarsulm, while VW is understood to be in talks with defence contractors regarding the Osnabrück facility.
Volkswagen remains the best-selling brand in the UK, with more than 104,000 registrations so far this year, capturing over eight per cent of the total market share.
While VW has 30,000 more sales than its closest competitor – namely BMW – it has seen a 3.16 per cent decline compared to the same time last year.
In the first half of the year, Volkswagen Group, including VW, Skoda, Audi, Cupra, Seat, Porsche and more, captured 26.5 per cent of all vehicle sales across the European Union.
Volkswagen Group and Volkswagen remain the best-selling conglomerate and individual brand, respectively, although sales are down compared to 2025.
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