VW chief confirms 50,000 job cuts as board rejects plant closures
10 reported
Volkswagen CEO Oliver Blume has confirmed plans to cut 50,000 additional jobs, despite the company’s supervisory board rejecting his proposal to close four German factories. In a Monday staff memo, Blume described the restructuring as “the most comprehensive realignment in the company’s history,” involving 12 initiatives, approximately 150 pages, and 45 individual resolutions. He stated that a previous 2024 program to reduce the workforce by 50,000 jobs was already underway in a “socially responsible manner” through voluntary redundancy and partial retirement, with 37,000 jobs already cut. Blume said a second phase of cuts is now necessary because company overheads are 20% above comparable companies, and half of those costs come from personnel. He noted that production is scheduled to end between 2031 and 2034 at three Volkswagen plants in Emden, Hanover, and Zwickau, and the Audi plant in Neckarsulm. The group plans to reduce annual car production from a pre-pandemic level of 12 million to 9 million, having already cut 2 million units in the past two years, with another 500,000 cuts planned in China. Blume said the company is exploring alternative options for factories, including advanced discussions about converting its Osnabrück factory from automotive to defence production, though a reported plan to make vehicles for Israeli defence company Rafael was blocked by Qatar’s sovereign wealth fund, which holds a 10% stake in VW.
What’s reported
Volkswagen CEO Oliver Blume confirmed plans to cut 50,000 more jobs.
The supervisory board rejected his plan to shut four factories in Germany.
Blume described the restructuring as “the most comprehensive realignment in the company’s history.”
The 2024 program to cut 50,000 jobs has already reduced the workforce by 37,000 through voluntary redundancy and partial retirement.
Company overheads are 20% above comparable companies; half of overhead costs come from personnel.
Production is scheduled to end between 2031 and 2034 at three VW plants (Emden, Hanover, Zwickau) and the Audi plant in Neckarsulm.
The group aims to reduce annual car production from 12 million to 9 million; 2 million units already cut, with 500,000 more cuts planned in China.
The company is in advanced discussions about converting its Osnabrück factory from automotive to defence production.
A reported plan to make vehicles for Israeli defence company Rafael was blocked by Qatar’s sovereign wealth fund, which has a 10% stake in VW.
IG Metall chair Christiane Benner said the proposals were unacceptable, noting the union had already made concessions.
Key figures
Oliver Blume, chief executive of Volkswagen
Christiane Benner, chair of IG Metall
Sources: The Guardian
