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Blume Defends Sharp Cost Cuts as VW Workforce Erupts in Protest

The plan to slim corporate functions and cut non-production costs creates a governance test for the supervisory board and Lower Saxony ahead of an early-September decision.

Overview

  • On Tuesday more than 10,000 employees at an extraordinary works assembly in Wolfsburg loudly booed Volkswagen CEO Oliver Blume after he outlined a sharpened savings drive and said the group must "reduce complexity" and cut costs.
  • Blume described a roughly 50,000‑job figure as a theoretical calculation rather than a fixed target and said initial cuts would focus on management, central functions, development and sales while relying where possible on voluntary exits.
  • Works‑council chair Daniela Cavallo said trust in the board is "damaged" and IG Metall warned it will resist unilateral cuts, signaling a likely escalation of labour conflict if management presses closures or mass layoffs.
  • Management has flagged that Emden, Zwickau, Hannover and Audi's Neckarsulm lack a "competitive allocation" for the 2030s but insisted plant closures are not decided and would be a last and costly option.
  • The dispute now moves to a series of site assemblies and option studies this week and to a decisive supervisory‑board meeting in early September where competing proposals from the state of Lower Saxony, labour and management will be tested.