VW workers boo boss as he urges them to ‘pull together’ amid job cuts
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- Volkswagen CEO Oliver Blume faced protests from thousands of workers at the company's headquarters as he announced a major reorganisation that could include job losses and factory closures.
- Blume stated the restructuring is vital for the struggling manufacturer's future, aiming to create viable prospects for all plants within six to 12 months, but faced strong opposition from labor representatives.
- The proposed plan, which aims to reduce costs by 30% to match competitors, includes voluntary measures and potential shifts towards defense industry production or electric vehicle manufacturing for China.
Thousands of Volkswagen workers booed and whistled in protest as CEO Oliver Blume urged them to "pull together" during a tense meeting at the company's headquarters. Blume announced a comprehensive reorganisation, essential for the struggling manufacturer's future, which could lead to significant job losses and factory closures.
Our jobs are not your balance sheet adjustments
Blume addressed over 10,000 employees, emphasizing the "largest transformation programme in our company's history." He stated that drastic restructuring measures are necessary, and "everyone needs to pull together now." This was the first time the CEO spoke publicly since plans for mass job cuts and potential factory closures were revealed. He aimed to guarantee a future for all of VW's European plants within six to 12 months.
Witnesses described the meeting as heated. Reports indicate Blume said half of the estimated 50,000 job cuts would occur in Germany, with the other half internationally. He stressed these figures were "theoretical calculations" based on costs being "about 30% above the average of comparable companies." The executive board, he said, is "fully behind the future plan" to make VW sustainable.
Our plan for the future is the largest transformation programme in our company’s history. To make this happen, everyone needs to pull together now.
Instead of forced layoffs, management prefers voluntary measures like phased retirement and a restrictive hiring policy. Factory closures are considered a "last and most costly resort." Potential strategies to keep plants open include shifting manufacturing towards the defense industry or producing electric vehicles for the Chinese market at German factories. However, production is set to end at the Osnabrück plant possibly next year, with no manufacturing planned at Emden, Zwickau, Neckarsulm, and Hanover from 2030.
Our aim is to create viable prospects for all locations within the next six to 12 months.
Daniela Cavallo, head of VW's works council, expressed strong opposition to factory closures and stated that trust in CEO Oliver Blume has been damaged. She accused Blume of being vague about the company's plans, making it "impossible to work with a CEO who doesn’t tell his people what’s going on." VW faces mounting pressure from Chinese competition, decreasing sales in China, and US tariffs, compounding years of falling profits and overproduction in Europe. Blume recently described the situation as "more than critical," noting previous cost-cutting measures were insufficient.
about 30% above the average of comparable companies
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Originally published by The Guardian. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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