A planned reorganization at Volkswagen Group (VW) could affect up to 140,000 jobs, union representatives warn, as reported by Bloomberg.
VW CEO Oliver Blume and Volkswagen brand chief Thomas Schäfer are set to present a cost-cutting plan on August 25 at a meeting with employees at the company's main plant in Wolfsburg. This meeting will be the first in a series of general employee assemblies to be held at VW plants across Germany in the coming days.
In July, the company presented a new strategy that includes reducing its vehicle lineup by approximately 50%. Additionally, the automaker intends to optimize production capacities to align them with the changed market environment and a sharp rise in competition. In particular, VW plans to cut capacity in China and Europe.
As previously reported, the company's plants in four German cities—Emden, Hanover, Zwickau, and Neckarsulm—are under threat.
VW has not officially stated the planned scale of job cuts, but media reports suggest an additional 50,000 employees could be affected. This would effectively double the layoffs envisaged under the cost-saving plan launched in 2024.
Union forecasts additionally account for another 40,000 jobs at the four German plants whose future is at risk, according to Bloomberg.
Tensions ahead of the first meeting between VW management and workers have already reached a high level, the agency notes. IG Metall union leader Christiane Benner called Blume's ambition to drastically cut costs and raise operating profitability to 9% "fantasies detached from reality," while local union representatives have threatened VW with possible strikes.
Last week, in an address to employees, Blume said that problems in the automotive sector will only intensify in the coming years, and that drastic cost cuts are necessary for the automaker to stay afloat.
