Overview
- Volkswagen CEO Oliver Blume spoke to workers in Wolfsburg on Tuesday and began a plant tour, saying current margins of about 3.8% are not enough to fund the company’s future.
- The group is pursuing the biggest restructuring in its history with a previously approved target to cut 50,000 jobs—about 37,000 of those already agreed—and management has signalled the programme could be expanded if needed.
- Unions and the works council warn that press leaks and uncertainty have stoked fear among staff and could lead to far larger job losses—unions cite scenarios of 100,000 to 140,000 exits and rumours of up to four German plant closures, which management calls unconfirmed.
- A recent internal works-council survey criticised company communication as poor and showed workers and their families feeling anxious, increasing pressure on talks with IG Metall and employee representatives.
- The push for cuts reflects weak half-year profits and structural pressures—profits fell about 31% to €3.103 billion to June, German labour costs run roughly 30% higher than some rivals, and heavy electrification spending plus global trade factors are prompting proposals to cut capacity and models while exploring site-specific alternatives such as defence work for Osnabrück.