Volkswagen chief executive Oliver Blume told employees in Wolfsburg that about half of 50,000 planned new job cuts will hit domestic operations in Germany.
The announcement came during an emergency staff assembly called to address a deepening crisis at Europe's largest automotive group, where management is attempting to push through a second major restructuring plan following an earlier overhaul in 2024.
Speaking to an audience of about 10,000 workers at the group's headquarters in northern Germany, Blume was repeatedly met with whistles and loud expressions of disapproval. Attendees said the gathering failed to calm employee anger over severe cost-cutting measures that could threaten tens of thousands of additional jobs across the automaker.
Global Restructuring and Factory Concerns
Excerpts of Blume's speech transmitted to Agence France-Presse showed that the restructuring measures extend across the entire corporate structure. Blume stated that about half of the required workforce adjustments would take place in Germany, while the remaining reductions would affect overseas operations across a total of approximately 170 companies.
In a separate statement, the Volkswagen management board indicated that it would continue to rely as much as possible on voluntary departures. The company plans to achieve the reductions primarily through retirement, mutually agreed severance settlements, and a restrictive hiring policy. Blume added that specific measures would be defined in consultation with employee representatives.
Addressing concerns over potential factory closures, Blume explained that management aims to establish stable operational prospects over the next six to twelve months. However, he acknowledged that production facilities in Emden, Hanover, Zwickau, and Neckarsulm do not currently possess viable manufacturing plans for the 2030s. He sought to reassure staff by stating that closing plants would always remain the final and most expensive option.
Defense Pivot Scenarios and Upcoming Talks
The restructuring push comes amidst a deepening internal conflict within the ten-brand automotive group. Aside from mass headcount reductions, management has also discussed potential scenarios involving a strategic shift toward the defense industry as the manufacturer seeks new business models to navigate its ongoing crisis.
Volkswagen AG, headquartered in Wolfsburg, is the flagship parent company of Europe's largest vehicle production network. The group encompasses ten distinct brands and operates extensive manufacturing hubs across Germany, including vehicle assembly plants in Lower Saxony and Baden-Wurttemberg. The current measures build upon a previous restructuring program initiated in 2024 as the German automotive sector faces persistent economic headwinds.
The Wolfsburg meeting marks the first of nine employee assemblies scheduled to take place over the coming days across Volkswagen's principal manufacturing facilities in Germany.
