Workers slam Volkswagen boss over lack of details of cost-cutting plan

An intense meeting between Volkswagen management and employees on Tuesday revealed dissatisfaction over a cost-cutting strategy that may jeopardize thousands more jobs at the struggling automaker. The gathering at Volkswagen's Wolfsburg headquarters marked the first of nine scheduled sessions at the company's main German locations.

The works council is seeking more transparency on the proposed measures, which could put up to 50,000 additional jobs and four German plants at risk, in addition to existing cost-cutting initiatives. Works council president Daniela Cavallo harshly criticized the board, led by CEO Oliver Blume, at the meeting, stating, "You can't work with a chief executive who doesn't tell his staff what's going on," expressing that workers' trust in Blume has been undermined due to the lack of details regarding Volkswagen's latest cost-cutting measures.

With 100,000 jobs already at risk, Volkswagen anticipates cutting 50,000 more German positions by 2030, including roles at Audi and Porsche subsidiaries. Earlier this year, Blume announced a more aggressive savings drive, potentially adding another 50,000 jobs to the line. Under the plans, plants in Emden, Zwickau, and Hanover, as well as an Audi plant in Neckarsulm, could close, though Blume views such a move as a last resort.

He is scheduled to speak to workers at the affected plants later in the week. The supervisory board, which includes employee representatives, rejected the latest cost-cutting proposals in July, making an agreement elusive. Blume emphasized during his address in Wolfsburg that "the entire car industry is under enormous pressure," citing US tariffs, shrinking margins in China, and global conflict.

While Volkswagen is performing well competitively, Blume stated that "we must reduce complexity, consistently streamline our structures and cut costs," noting that while the company's 3.8% operating margin is solid, it is "not enough to finance our future from our own resources." Works council president Cavallo also lambasted the 50,000 additional job cuts Blume announced earlier this year, considering it a figure designed to impress stock markets.

She criticized management for not providing details on which regions, Volkswagen brands, and subsidiaries would be most affected by the cuts, earning applause from the 10,000+ employees present. Industry expert Stefan Bratzel from the Center of Automotive Management (CAM) expects tensions to remain high at Volkswagen in the coming months, as strategic decisions are likely to be made by the supervisory board, with the board's next meeting scheduled for September.