The battle for Volkswagen’s future has burst into the open, with chief executive Oliver Blume for the first time putting a number on potential job losses beyond those already agreed. Speaking in an internal intranet interview and later to media, Blume warned that without reductions in labour costs, an extra 50,000 positions globally could be on the line. That would come on top of a previously agreed reduction of 50,000 posts in Germany by 2030—meaning the total tally could reach 100,000. Of the existing plan, 37,000 contracts have already been signed and 27,000 employees are expected to leave by year-end, with a further 5,000 management roles to be eliminated over the next four years.
Blume’s admission landed against a backdrop of open boardroom rebellion. On 2 July, the supervisory board rejected a wider savings package, with labour representatives and the state of Lower Saxony voting it down. Reports put the vote at 12 against 7. The next board meeting is not scheduled until September, leaving the carmaker in a state of suspended animation. The works council accused Blume of stoking uncertainty rather than providing clarity, and plans extraordinary assemblies after the summer break. Tensions have been heightened by union warnings that management may attempt to hive off the core brand and component production from the Volkswagen AG structure to circumvent co-determination rights. The state of Lower Saxony holds a 20.2% voting stake and a blocking minority under the VW law.
Blume himself tried to ease fears, telling Bild am Sonntag that there are “more intelligent solutions than closing plants.” Yet he conceded that the company’s products, though popular, are not profitable enough. Four German factories are particularly vulnerable: Zwickau, Emden, Hannover and Neckarsulm—together employing roughly 40,000 workers—have no guaranteed utilisation for the 2030s. Reports suggest vehicle production could end at Zwickau and Emden by 2031, Hannover by 2032 and Neckarsulm by 2034. For the Osnabrück site, talks are under way with the defence industry as a potential alternative.
The underlying math is stark. Volkswagen’s overheads are about 20% higher than those of comparable rivals, and if labour costs remain unchanged, a gap that size theoretically requires a headcount reduction in the tens of thousands. Beyond headcount, the company is planning a sweeping product portfolio overhaul: the model range could shrink by up to 50%, the number of equipment variants by as much as 75%, and annual production capacity is to be cut from 12 million vehicles to 9 million. European overcapacity of an estimated 500,000 units and US tariffs costing roughly €5 billion a year are adding to the pressure.
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China continues to be the biggest drag on delivery numbers. In the second quarter of 2026, Volkswagen delivered 2.08 million vehicles worldwide, an 8.6% decline (some reports put the drop at 9%). Sales in China collapsed by 37% to 424,300 vehicles as local competition intensified. A rare bright spot came from the new ID.Polo entry-level electric car, which attracted 50,000 orders within four weeks of launch. In Europe, the order book for pure battery-electric vehicles grew by more than 50% in the first half.
At the bourse, the preference shares closed Monday at €71.56, up 0.7% from Friday’s close of €71.06, though intraday trading saw them dip to around €71.30. The stock remains perilously close to its 52-week low of €69.20, hit on 1 July, and is 34.4% below its December 2025 high of €109.10. The week-on-week loss stands at 5.14% (alternative data shows 5.49%), while the year-to-date decline is 32.55% (some sources report 32.80%). Technical indicators point to a deeply oversold situation: the relative strength index is at 32 (or 31.1 per other calculations) and the annualised 30-day volatility hovers around 32.4–32.5%, underscoring investor anxiety. The stock trades 15% below its 50-day moving average and almost 24% below its 200-day moving average.
The next milestone is the full half-year report on 23 July, following a pre-close call held on Monday. With the supervisory board deadlocked until September and works councils mobilising, Blume’s ability to push through a leaner, more profitable Volkswagen faces its sternest test—and the share price is likely to remain hostage to the boardroom drama until a path forward emerges.
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