Volkswagen CEO faces angry workers in push for radical cuts

On Tuesday, over 10,000 Volkswagen workers convened at the company's headquarters in Wolfsburg to hear CEO Oliver Blume propose a radical restructuring plan that could result in up to 50,000 job losses. Blume urged the employees to "pull together" in support of the plan, while labor leaders expressed concern that trust in management had been compromised.

Blume's proposals, which would essentially double existing restructuring efforts, have not yet gained approval from Volkswagen's supervisory board, with both the labor side and the state of Lower Saxony wielding significant influence. The meeting, which was not open to the press, saw some workers booing Blume and displaying banners with slogans such as "Our jobs are not your balance sheet adjustments" and "Respect is not up for negotiation."

Volkswagen labor leader Daniela Cavallo, speaking on behalf of the workforce, emphasized that German factories were integral to the company and reiterated her opposition to factory closures. Blume highlighted that the job cuts were based on a theoretical benchmark to align Volkswagen's costs with competitors and stressed that factory closures were considered the "last and most expensive resort."

He also suggested that the defense sector or Volkswagen's models for the Chinese market, which are not yet available in Europe, could be alternatives to address overcapacity at German plants. However, the company has yet to announce any breakthroughs on these proposals, with automotive production set to cease in Osnabrück as early as next year.

Four other plants - Emden, Zwickau, Neckarsulm, and Hanover - also face uncertain futures from 2030.