Volkswagen AG (VAG) announced on June 26 that it intends to cut 100,000 jobs over the coming years. The company’s CEO, Oliver Blume, revealed plans to significantly increase job cuts by closing four German factories and spinning off the Volkswagen brand into a new company, effectively transforming Volkswagen AG into a separate entity.
Blume also stated his intention to reduce investments by approximately 15%—amounting to €130 billion over the next five years—and withdraw the Volkswagen brand from VAG jurisdiction as part of cost-cutting measures aimed at reducing group losses.
The German automotive sector is now teetering on the brink of crisis, with French automaker Renault Group also planning to cut 800 engineering positions in France by the end of 2027 to counter rising competition from Chinese manufacturers.
