Volkswagen’s stock drops nearly 2% as reports surface of potential 100,000 job cuts, doubling prior restructuring targets.
Volkswagen’s stock fell to its lowest level in 15 years after reports emerged of plans to cut up to 100,000 jobs. The decline approached 2% in Frankfurt trading, marking the weakest close since October 2010 if sustained.
The automaker had previously agreed to eliminate 50,000 positions by 2030 under a 2024 union deal. The new proposal would double that figure, targeting plants in Hanover, Zwickau, Emden, and Neckarsulm, which employ over 45,000 workers. A supervisory board meeting is scheduled for July 9 to discuss the plan.
Labor groups, including IG Metall, have vowed to oppose the cuts, calling them unacceptable. Volkswagen has not confirmed the details but acknowledged the need for significant restructuring across its brands and subsidiaries.