Story perspectives

VW’s 100,000-Job Cut Plan Blocked, Strikes Loom.

7/14/2026

Summary

Blume Proposes Cuts

Volkswagen CEO Oliver Blume proposed cutting 50,000 jobs, raising cuts to 100,000 of the 660,000 workforce.
A July 13, 2026 memo said the cuts target a 20% cost gap with rivals.
Labor representatives blocked the plan at a Wolfsburg meeting, prompting IG Metall to threaten strikes.
Volkswagen will close the Emden, Hanover, Zwickau and Neckarsulm plants, sell a 51% Everllence stake for €7.4 billion, and report a 2025 net profit of €6.9 billion, €2.9 billion less.

Summary

Blume Cuts Lineup

Volkswagen Group will halve its model lineup, CEO Oliver Blume announced internally.
Porsche may drop the Taycan, Cayenne Coupé and the upcoming 718 Boxster/Cayman.
Audi, VW, Škoda, Cupra and Seat may drop several models, including the Q6 e-tron Sportback, Q5 Sportback and successors to the Jetta, Taos, Fabia and Raval.
Blume said factory costs fell about 20 percent on average and that the firm will boost sales per model by streamlining the portfolio.

Summary

Blume Projects Growth

Volkswagen projects 2026 sales revenue growth of 0-3 percent, from EUR 321.9 billion in 2025, and an operating profit margin of 4.0-5.5 percent, up from 2.8 percent.
It expects an investment ratio of 11-12 percent, cash flow of EUR 3 billion to EUR 6 billion, and liquidity of EUR 32 billion to EUR 34 billion.
The outlook excludes impact of Middle East tensions and asset sales while CEO Blume cites repurposing German plants for defence and building Chinese-market Volkswagen models in Europe.

History

Historical Context

After the 2008-09 auto crisis forced General Motors into Chapter 11 on June 1, 2009, the U.S. Treasury injected a $50 billion loan and GM shed about 20,000 U.S. jobs, closing several plants. Volkswagen’s 2026 plan to cut up to 100,000 jobs and close Emden and Zwickau mirrors that earlier downsizing, prompting unions such as IG Metall to demand stronger safeguards.

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Blume Proposes Cuts

Volkswagen CEO Oliver Blume proposed cutting 50,000 jobs, raising cuts to 100,000 of the 660,000 workforce.
A July 13, 2026 memo said the cuts target a 20% cost gap with rivals.
Labor representatives blocked the plan at a Wolfsburg meeting, prompting IG Metall to threaten strikes.
Volkswagen will close the Emden, Hanover, Zwickau and Neckarsulm plants, sell a 51% Everllence stake for €7.4 billion, and report a 2025 net profit of €6.9 billion, €2.9 billion less.

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