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Volkswagen Approves Plan to Cut Another 50,000 Jobs

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Volkswagen’s board has approved plans to eliminate another 50,000 jobs by 2030 as part of the German automaker’s biggest restructuring in its nearly 90-year history. The latest cuts will bring the total number of jobs the group plans to reduce to around 100,000. The company, which owns brands including Audi, Porsche and Skoda, is also reviewing the future of four German plants.

Volkswagen said the workforce reduction is necessary to improve competitiveness amid changing demand and rapid technological shifts. The company also plans to reduce the number of vehicle models it produces by 50% by 2035 and cut product complexity by 75%. Shares of Volkswagen rose around 7% in Frankfurt following the announcement.

The automaker has faced declining profits and weaker sales, particularly in China, where competition from rapidly expanding Chinese manufacturers has intensified. Sales have also declined in the US, partly due to tariffs. Volkswagen employed more than 660,000 people worldwide in 2025 and is now assessing alternative uses for its plants in Emden, Zwickau, Hanover and Neckarsulm, where production capacity exceeds demand.

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German Union Warns of Major Resistance to Volkswagen Restructuring

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Germany’s largest union, IG Metall, has warned of strong opposition if Volkswagen attempts to revise a restructuring agreement reached less than two years ago. Union leader Thorsten Groeger said workers across Volkswagen’s sites would resist any move to reopen the deal, as the automaker considers major changes including plant closures, business carve-outs and up to 50,000 additional job cuts.

Volkswagen’s supervisory board is scheduled to meet on Friday to vote on three competing restructuring proposals. The decision could intensify the dispute between management and workers and potentially lead to an extraordinary shareholder meeting. The latest restructuring push comes as Volkswagen faces pressure from tariffs, growing competition from Asian automakers and weakness in the Chinese market.

Volkswagen finance chief Arno Antlitz said the company would do everything possible to protect jobs but warned that there are currently no viable production plans for plants in Hanover, Emden, Neckarsulm and Zwickau. He said maintaining current production levels without reducing excess capacity could leave Volkswagen with a permanent cost disadvantage of around €1.5 billion ($1.74 billion) annually.

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Commerzbank to Cut 3,000 Jobs as It Resists UniCredit Takeover Push

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Commerzbank announced plans to cut 3,000 jobs and raise its long-term profit targets as it fights to remain independent amid a takeover attempt by Italy’s UniCredit. The German bank said the restructuring would strengthen revenue and profitability by 2028, while criticizing UniCredit’s €37 billion takeover proposal as unclear and risky. Commerzbank also expects around €450 million in restructuring costs tied to the layoffs.

The takeover battle has become a major issue in Germany’s financial and political circles, with UniCredit CEO Andrea Orcel pushing for a major cross-border European banking merger. UniCredit now holds just under a 30% stake in Commerzbank and argues that larger European banks are needed to compete globally. However, Commerzbank insists it can perform better independently and unveiled stronger targets, including €15 billion in revenue and €4.6 billion profit by 2028.

Germany’s government has openly opposed the takeover effort, with Chancellor Friedrich Merz criticizing hostile banking acquisitions and warning they damage trust. Germany still owns a 12% stake in Commerzbank from a past financial crisis bailout, and some politicians are urging Berlin to increase its holding to block UniCredit’s advances. The announcement came as Commerzbank reported a 9.4% rise in first-quarter net profit, beating analyst expectations.

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