BERLIN, June 26, 2026, 11:01 CEST
- Volkswagen’s reported job cuts would hit about 15% of its workforce as of March and could mean closing four plants in Germany.
- Five-year investment is reportedly getting cut by 15% to a little over €130 billion, about €23 billion lower than the last plan.
- Xetra traded during the dateline. Deutsche Börse’s hours for regular Xetra trading are 0900 to 1730.
Volkswagen AG (ETR:VOW3) may be in for a deeper liquidity crunch than a headline figure on job cuts suggests. Manager Magazin reported that CEO Oliver Blume is targeting up to 100,000 job cuts worldwide, wants to close four German plants, and plans to trim five-year investment by about 15% to a little over €130 billion. Volkswagen would not comment on any internal documents and said the proposals would go through standard review.
Volkswagen’s planned headcount cut would take out about 15.2% of its 657,400 staff as of the end of March. With 2025 deliveries at 8.98 million vehicles, that pushes the group’s simple deliveries-per-employee to 16.1 from 13.7, assuming volumes don’t change. It’s a basic calculation, since the total workforce covers software, services, and China partnerships, but it gives investors a clearer sense of the planned cutback’s reach.
Volkswagen’s first-quarter operating return on sales came in at 3.3%. That matters for a company aiming for 8% to 10% by 2030 and pushing for bigger net cash flow out of its automotive unit. Just making labor cuts won’t get it there if business stays soft in China and North America.
The investment line looks key here. Volkswagen is cutting planned investment by 15%, taking it to just over €130 billion. That suggests the old five-year plan was about €153 billion—so this is about €23 billion less than before. The change frees up cash for the balance sheet, but it also means less money for plants, software, and upcoming models.
Volkswagen says it’s pushing new models even as it keeps a lid on spending. The group told Deutsche Welle on June 24 that it is rolling out new cars in Europe and China, but EV demand is still soft. Volkswagen is reworking its Barcelona-area factory to build cheaper EVs around €25,000.
Volkswagen CEO Oliver Blume told shareholders last week the next few years are “critical.” Volkswagen said its brands launched over 30 new models in 2025, with more than 20 vehicles coming this year. The lineup includes the ID. Polo, ID. Cross, Cupra Raval, and Škoda Epiq. volkswagen-group.com
VW CFO Arno Antlitz in April called the first-quarter margin “far too low” before special items. “Planned cost reductions are not enough,” he said. Antlitz said Volkswagen needs to cut complexity in its products, tech platforms, company structure, and decision-making. volkswagen-group.com
Volkswagen’s reported plan would nearly double the scale of cuts already underway. The automaker told shareholders it had signed off on 50,000 job cuts by 2030 across its group companies, including 35,000 at Volkswagen AG. Binding agreements now cover more than 28,000 departures. The company said its factory costs at German sites will drop by over 20% on average in 2025.
Production at Volkswagen’s Hanover, Zwickau and Emden sites, and at Audi’s Neckarsulm plant, will stop when current models run out, Manager Magazin reported. That will put pressure on a 2024 union agreement preventing plant shutdowns this decade—something labor leaders had reiterated in May.
Volkswagen is shaking up more than just its workforce. Reuters said Thursday the group tapped Bain Capital to take a 51% stake in its engine maker Everllence, a move set to bring in €7.4 billion. Volkswagen shares climbed up to 3% after news of the deal. The automaker said it hasn’t decided yet how it will use the money.
Manager Magazin reported Blume and Antlitz want to split VW’s main brand and its parts-making sites into stand-alone businesses. That could let investors see the cost base and cash needs for the VW brand more clearly than now. Volkswagen hasn’t confirmed any such plan.
Frankfurt markets were open at the dateline, with local time in Germany at 11:01 CEST. Deutsche Börse’s Xetra runs Monday to Friday, 0900 to 1730, according to .
