Volkswagen CEO Oliver Blume has confirmed the German car giant is planning to cut up to 100,000 jobs globally, double the previously stated figure of 50,000 posts in Germany by 2030. The group, which includes Porsche, Audi, Seat, and Skoda, suffered a steep profit decline last year due to falling sales in key markets and increasing competition from Chinese brands. In a memo to staff, Blume said the company's costs are 20% higher than rivals and it needs to reduce outgoings further, assessing adjustments across all brands and regions. The profit drop has been sharp: from €22.6bn in 2023 to €19.1bn in 2024, and then to just €8.9bn last year. Sales in China fell 26% in the first half of the year, while US sales dropped over 7% partly due to tariffs. In late 2024, VW reached an agreement with German union IG Metall to cut 35,000 jobs at its namesake brand by 2030, with another 15,000 at other brands. The current plans go much further, though some analysts suggest the 100,000 figure may be a negotiating tactic and the final cuts could be lower.
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