State Governments and IG Metall Vow ‘All Power’ Against VW Plans to Cut 100,000 Jobs, Close Four Plants

A furious backlash is building against Volkswagen’s board after reports surfaced that Chief Executive Oliver Blume is pushing for a far deeper cost-cutting drive than previously disclosed. Union leaders and regional politicians in two German states are threatening to block the restructuring at every turn, setting the stage for a high-stakes showdown in July.

Workforce representatives at Europe’s largest automaker had already been bracing for roughly 50,000 job cuts, with 37,000 of those considered a done deal. Now, according to multiple media accounts, the total could double to as many as 100,000 positions worldwide. Even more explosive: four German production sites are said to be on the chopping block — Hannover, Zwickau, Emden and Neckarsulm.

IG Metall chairwoman Christiane Benner, district leader Thorsten Gröger and Group Works Council chief Daniela Cavallo issued a joint statement vowing to fight the plans “with all our might.” Their position is unusually strong because worker representatives and the state of Lower Saxony together hold a majority on VW’s supervisory board, making plant closures extremely difficult to push through without their consent.

The escalating standoff comes as VW’s financial position sours. Net profit for the 2025 fiscal year slumped by almost half, adding urgency to management’s demands for sweeping change. Top executives were briefed in recent days on the need for drastic measures, and the stock market reacted nervously: VW shares fell 3.91% on the day of the announcement, closing at €74.28.

Behind the cuts lies a broader transformation plan. A central element would spin off the core VW brand into an independent legal entity. Analysts see this as a potential move to sidestep the codetermination rights anchored in the VW Law — a special statute that grants the state of Lower Saxony a golden share and gives labour a powerful voice in major decisions. Company spokespeople, however, insist that the existing “Zielbild 2030” strategy and the job guarantees tied to it remain in force.

Resistance from state capitals is already mobilising. Lower Saxony, VW’s home state, rejects any plant closures outright. Saxony’s Premier Michael Kretschmer expressed deep concern, and his state’s economics ministry said it would take legal and political steps to block the closure of the Zwickau facility. Industry observers warn that shuttering Zwickau would deliver a devastating economic blow to the entire region.

The next flashpoint is July 9, when VW’s supervisory board convenes. The disputed restructuring proposals are expected to land on the table. With unions and state governments united in opposition, a bitter confrontation is all but certain. The federal government in Berlin has signaled it wants to prevent any German plant closures if possible, arguing that the country’s industrial backbone must be protected.

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