Volkswagen layoffs: Workers look to grill CEO during plant visits over threat to 1,40,000 jobs — Here’s what we know
The works council of Volkswagen employees will hold extraordinary staff meetings with CEO Oliver Blume in August to discuss plans that risk up to 1,40,000 job losses at the German automaker, Reuters reported.
The meetings, where employees plan to question Blume about potential layoffs, will be held on August 25 at the German automaker’s headquarters in Wolfsburg and on August 26 at the company’s plants in Emden and Zwickau, which are among the factories at risk of closure.
- Blume said Volkswagen could cut another 50,000 jobs, on top of the 50,000 already underway, to stay competitive on costs.
- The threat of factory closures after 2030 would put a further 40,000 jobs at risk, the works council said.
- Responding to questions, a Volkswagen spokesman told the news agency there was no agreement at the moment and declined to comment on the number of jobs that might be disrupted.
Layoffs despite CEO’s promise of ‘smart solutions’
It is noteworthy that layoffs could occur, although Blume told Germany’s Bild am Sonntag that “there are smarter solutions” than closing factories.
Citing an internal memo, AFP reported that at least 1,00,000 jobs are at risk; This number increased by 50,000 compared to the previous one. This will include 35,000 jobs across the core Volkswagen brand under a 2024 deal with unions. This figure exceeds the 50,000 jobs General Motors laid off when it declared bankruptcy in 2009, marking the largest restructuring in the history of the global auto industry.
The German auto giant has been under intense pressure from US tariffs, lower profit margins on electric cars and, above all, fierce competition from China, where automakers are now increasingly exporting to Europe.
Volkswagen isn’t the only German automaker to see its business suffer lately. BMW and Mercedes-Benz have also seen profits fall due to increased competition from local rivals, particularly in China, the world’s largest auto market.
Unions criticize leaks, anger workers
Meanwhile, unions strongly criticized VW and Blume for inconveniencing employees by allowing media reports of mass layoffs to spread without comment, and demanded that the CEO take a public stand.
In an internal memo reported by AFP, Blume insisted the leaks to the media were unplanned and said reports of impending cuts made him “angry”. “Disclosing such confidential, sensitive information not only unsettles our workforce but also harms our business,” he said.
(With inputs from Reuters)
