Volkswagen's chief executive, Oliver Blume, was met with boos and whistles of protest from thousands of workers at the company's headquarters on Tuesday. Blume told more than 10,000 employees that a comprehensive reorganisation, which may include job losses and factory closures, is essential for the company's future.
Workers held banners and chanted slogans, including: “Our jobs are not your balance sheet adjustments,” as Blume urged them to “pull together” for drastic restructuring measures. Blume stated that the proposed restructure aims to guarantee a future for all plants at Europe’s largest carmaker.
Blume reportedly said that half of the expected job cuts, often cited at about 50,000, would take place in Germany, with the other half internationally across approximately 170 companies. He clarified that this worldwide job cuts plan is a “theoretical calculation” based on the company's costs, which he said are “about 30% above the average of comparable companies.”
Instead of forced job cuts, management intends to rely on voluntary personnel measures such as phased retirement, mutual agreements, natural attrition, and a restrictive hiring policy. Factory closures are described as the “last and most costly resort.”
The restructuring plans still require approval from the VW group’s supervisory board, which represents the labour force, the state of Lower Saxony, and shareholders. Daniela Cavallo, head of VW’s works council, expressed strong opposition to factory closures and stated that trust in the executive board and CEO Blume has been damaged.