Volkswagen Considers Cutting Tens of Thousands of Additional Jobs

Volkswagen's Controlling Shareholders Back Major Restructuring Plan

Volkswagen's controlling shareholders, Porsche SE—the investment company of the Porsche/Piëch family—support the automaker's leadership in a major restructuring plan that could result in the elimination of tens of thousands of additional jobs.

According to Hans Dieter Pötsch, chairman of the supervisory board of Porsche SE, Volkswagen is at a "historic crossroads," and delaying decisions will only deepen the company's problems. He stated that all stakeholders must take responsibility to maintain competitiveness.

Volkswagen's Chief Executive Officer Oliver Blume has been working for several months to transform the group on a large scale. The company, which brings together the Volkswagen, Audi, Porsche, and Lamborghini brands, is fighting against rising costs, the impact of tariffs, and intensified competition from Chinese manufacturers.

The restructuring plan, which adds to tens of thousands of reductions already implemented, envisions the elimination of approximately 50,000 additional jobs and the possible closure of four plants in Germany.

However, implementation of the plan requires the support of powerful trade union representatives and the Lower Saxony government, which holds a 20% blocking stake in Volkswagen. According to Reuters, at a supervisory board meeting held in July, the unions and Lower Saxony did not support Blume's initiative. A new round of negotiations is scheduled for early September.

IG Metall, the company's most influential trade union, sharply criticized the shareholders and stated that they are prioritizing dividend maintenance over employee welfare. According to the union, Volkswagen's competitiveness should be strengthened not by reducing jobs, but through innovative products and a clear long-term development strategy.

At the same time, Porsche SE announced its full support for Volkswagen's leadership plan. According to the company's financial director, Johannes Lattwein, all possible options should be considered to restore competitiveness, including reducing excess production capacity, optimizing costs, and accelerating the decision-making process.

In parallel, Porsche SE has also released its first-half financial results. The company's adjusted net profit fell by 14.5% to 949 million euros, after which its shares declined by approximately 1.7% at the start of the day. In recent years, the share prices of both Volkswagen and Porsche have declined significantly.