New Restructuring Plan Angers Volkswagen Workers, Germany to Bear Half of 50,000 Job Cuts

Germany is expected to bear around half of the burden of Volkswagen’s plan to cut 50,000 jobs.

This was confirmed by the group’s chief executive, Oliver Blume, as he addressed employees during a meeting at the company’s headquarters in Wolfsburg.

Europe’s largest automaker, which controls 10 brands, is facing a serious crisis. To reduce costs and improve the company’s condition, Volkswagen has prepared a new restructuring scheme, the second major initiative of its kind after the 2024 plan.

Blume explained that approximately half of the necessary adjustments would be concentrated in Germany, while the remainder would be implemented in overseas operations. Overall, the measures are expected to affect around 170 companies.

According to the executives, the aim is to achieve staff reductions as much as possible through voluntary departures. In this context, early retirement, agreements with employees, and restrictions on new hiring will be used in particular.

The announcement, however, has sparked a strong reaction among workers. During Blume’s speech to around 10,000 employees, boos and expressions of dissatisfaction were heard repeatedly, interrupting him several times.

Uncertainty also surrounds several factories in Germany. Blume acknowledged that the plants in Emden, Hanover, Zwickau, and Neckarsulm do not yet have a stable production outlook for the 2030s.

Volkswagen’s chief executive described closing factories as “the last and most expensive solution.” The company aims to determine sustainable alternatives for these plants within the next six to 12 months.

Decisions on the specific measures will be made after consultations with employee representatives.

The meeting in Wolfsburg opened a series of nine meetings that will be held over the coming days at Volkswagen’s main factories in Germany. Through them, the company seeks to explain the restructuring plan to workers and ease the tensions that have arisen.