Volkswagen says cutting 100,000 jobs by end of decade
FRANKFURT, Germany — German car giant Volkswagen said Thursday that management and unions had agreed to cut a total of 100,000 jobs by the end of the decade, the biggest-ever restructuring in the global auto industry.
German car manufacturer Volkswagen announced on Thursday that it plans to cut 100,000 jobs by the end of the decade, marking the largest restructuring in the global automotive industry. This reduction includes 50,000 jobs on top of the 50,000 already agreed upon. The company, which includes brands such as Audi and Porsche, stated that this measure is necessary to align workforce levels with economic realities amid US tariffs, uncertain demand for electric vehicles, and intense competition, particularly in China.
Volkswagen cited four German plants -- located in Hannover, Emden, Zwickau, and Neckarsulm -- as potentially at risk for closure, marking the first time the company would shut down factories within its home country. Martin Lehmann, a worker at the Zwickau facility since 2012, expressed concern over the potential loss of jobs and the impact on the local region. The plants' closure would represent a significant blow to the community, as they are vital to the local economy.
After negotiations between management and unions, the supervisory board, composed of both labor and shareholder representatives, approved the executive board's restructuring plan. CEO Oliver Blume emphasized that this is a positive sign for the future of the Volkswagen Group. However, unions and management had previously clashed due to the perception that management had not been transparent about the job cuts.
The IG Metall union accused the company of making misleading statements and called the proposed restructuring "nonsense, rubbish, hogwash."
In response to the controversy, Volkswagen agreed to reduce the supervisory board's power, potentially weakening the influence of unions within it. The supervisory board has tasked the executive board with developing a model for an updated decision-making and group structure, with approval thresholds adjusted to align with standard practices.
This move aims to address concerns and prevent further escalation of the conflict, with both union representatives and the state of Lower Saxony stating that they have reached a compromise.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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