Volkswagen restructuring could put up to 140,000 German jobs at risk, unions warn
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Volkswagen's restructuring plans could put up to 140,000 jobs in Germany at risk, union representatives warned ahead of a meeting between management and employees in Wolfsburg on August 25. CEO Oliver Blume and brand chief Thomas Schäfer are set to present further cost-cutting measures at the first of a series of plant meetings. The warning comes as the automaker faces a deteriorating car market and rising competition.
Key Facts
- Volkswagen's restructuring plans could put up to 140,000 jobs in Germany at risk, according to union representatives.
- CEO Oliver Blume and brand chief Thomas Schäfer are meeting employees at the Wolfsburg headquarters on August 25.
- In July, Volkswagen announced a strategy to cut its model range by about half and optimize production capacity.
- Plants in Emden, Hanover, Zwickau, and Neckarsulm are under particular pressure in Germany.
- IG Metall chief Christiane Benner criticized Blume's cost-cutting plans and called the 9% operating margin target unrealistic.
Union Warning
Union representatives warned that Volkswagen's restructuring plans could put up to 140,000 jobs in Germany at risk. The warning came ahead of a meeting between management and employees in Wolfsburg on August 25. CEO Oliver Blume and brand chief Thomas Schäfer are set to present further cost-cutting measures at the first of a series of plant meetings. IG Metall chief Christiane Benner criticized Blume's plans to cut costs and raise the operating margin to 9%. She called the targets 'fantasies detached from reality'.
Restructuring Plans
In July, Volkswagen announced a new strategy that includes cutting its model range by about half and optimizing production capacity. The review will affect the company's plants in Europe and China. In Germany, plants in Emden, Hanover, Zwickau, and Neckarsulm are under particular pressure. Volkswagen has not officially announced large-scale layoffs. German media reported the possibility of an additional reduction of about 50,000 jobs.
Management Response
Volkswagen insists on the need for strict cost savings. Blume said structural problems in the automotive industry will intensify in the coming years. He argued that large-scale cost reductions are necessary to maintain the company's competitiveness. Local union representatives have already said strikes are possible if management continues the cost-cutting program.
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Volkswagen restructuring could put up to 140,000 German jobs at risk, unions warn
