At a German Plant, Workers Protest as VW's 50,000 Job Cuts Take Shape
13.06.2026 - 04:43:55 | boerse-global.de
Outside Volkswagen's Osnabrück factory, IG Metall union members and works council leaders have taken to the streets in recent days. Their demand: a concrete future plan from management. Around 2,300 people work at the site, but production of the T-Roc Cabrio is scheduled to end in mid-2027. No replacement model has been announced.
One option under discussion would convert parts of the plant to manufacturing defense equipment — specifically components for the Iron Dome air-defense system. No decision has been made yet.
The protest in Osnabrück reflects a broader upheaval. Volkswagen has confirmed that 28,000 employees have already signed binding agreements to leave the company by 2030. Next year alone, 19,000 positions in Germany will disappear. Across the entire group, 50,000 jobs are being cut at domestic sites, affecting not just the core VW brand but also Audi, Porsche and the software subsidiary Cariad.
Works council chief Daniela Cavallo warned on June 12 that the downsizing must not proceed without clear prospects for the remaining staff and locations. Otherwise, she said, the company risks sliding into a dangerous imbalance.
The financial pressure behind the cuts is stark. Operating profit at Volkswagen slumped 53 percent in 2025 to €8.9 billion, pushing the operating margin to 2.8 percent — the lowest level since the diesel-emissions crisis. U.S. tariffs are adding roughly €5 billion in annual costs.
CEO Oliver Blume, who plans to release more details in the coming days, has set an ambitious target: net savings of €6 billion per year by 2030, with an operating margin goal of 8 to 10 percent. Early measures are showing some effect — factory costs at German sites have fallen more than 20 percent since 2024, generating about €1 billion in savings so far.
The job reductions are meant to be socially cushioned. Volkswagen is relying on natural attrition, partial retirement, early-retirement packages and severance payments. Workers at most German plants have job protection until 2030.
Yet a fresh round of cost-cutting is coming this summer. This time, executives are expected to put more pressure on Audi and Porsche, traditionally the group's profit engines.
Volkswagen is also reducing its global annual production capacity to nine million vehicles. The open question: will that be enough to steer the company back to stable profitability?
