Volkswagen labour chief says confidence in CEO damaged but can be repaired
Workers say 50,000 more jobs may be at risk as executives begin extraordinary meetings to explain the restructuring and address criticism of poor communication.
- On Tuesday, Volkswagen CEO Oliver Blume addressed about 10,000 workers at Wolfsburg headquarters, defending restructuring plans while warning the company is in a "more than critical state" requiring urgent action.
- Management cites a permanent 1.5 billion euros annual disadvantage, with overhead costs around 30 percent higher than competitors amid Chinese competition, patchy demand, and U.S. tariffs.
- Works council chair Daniela Cavallo stated trust in the executive board "has been damaged, but not yet beyond repair," while employees criticized the company's "disastrous external communication" during the meeting.
- Plans include a potential 50,000 additional job cuts, bringing the total to 100,000, while management faces uncertainty regarding four German plants that may not remain profitable in the 2030s.
- The state of Lower Saxony's 20% voting rights and labor's board representation prevent unilateral closures, forcing management into complex, protracted negotiations to finalize any workforce reductions.
150 Articles
150 Articles
There is turmoil at Volkswagen, the crown jewel of German industry. CEO Oliver Blume has already cut 50,000 jobs, and the unions fear that this number could eventually rise to 140,000. What is going on? And how did the manufacturer lose its aura as the ‘people’s carmaker’? HLN automotive specialist Brecht Vanhaelewyn provides the analysis. “Dieselgate also played a role.”
Volkswagen Layoffs: Up to 140,000 Jobs at Risk As Cost-Cutting Plan Sparks Union Warning | 🚘 LatestLY
Labor representatives at Volkswagen AG have warned that as many as 140,000 jobs across the German automotive giant could ultimately be affected by escalating cost-cutting measures, as executive leadership prepares for one of the most contentious restructuring efforts in company history. 🚘 Volkswagen Layoffs: Up to 140,000 Jobs at Risk As Cost-Cutting Plan Sparks Union Warning.
At the end of 2024, it was said that more than 35,000 jobs were to make the German VW sites competitive again. Meanwhile, group-wide mining programs for around 50,000 jobs are underway, head of the company Oliver Blume lists a further 50,000 and the works council adds a further 40,000 threatened jobs due to possible plant closures. Volkswagen, IG Metall and the works council sold their agreement "Future Volkswagen" as a big bailout within 20 mon…
The conflict over the austerity course at Volkswagen is intensifying. In the extreme case, works council director Daniela Cavallo keeps the elimination of up to ... The post VW works council warns against the loss of 115,000 jobs in Germany alone appeared first on Apollo News.
Volkswagen CEO Oliver Blume spoke to his staff on Tuesday morning about the announced job cuts. The unions had feared that the number of layoffs would rise from 100,000 to 140,000. Blume announced that this will not be the case and that half of the job losses will take place in Germany.
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