A recent report in Manager Magazin suggests that Volkswagen, Europe’s largest automaker, is considering a global workforce reduction of up to 100,000 positions from its current headcount of around 657,000. This potential cut would double the scale of earlier targets, which were already unprecedented in their scope. Details on how the figure is calculated remain unclear, as the central planning document reportedly does not specify a firm number.
Volkswagen CEO Oliver Blume has presented a restructuring concept to the company’s board. According to insiders, the plan is deliberately vague on exact targets. A company spokesperson declined to comment on confidential internal documents, noting only that “the entire automotive industry and the Volkswagen Group are undergoing a profound transformation.” He added that the management board has been working intensively on a future strategy to streamline operations, increase efficiency, and leverage technological synergies. The supervisory board is scheduled to review the proposals on July 9.
The report indicates that, over the medium term, four production sites could be shut down: the Volkswagen plants in Hanover, Zwickau, and Emden, as well as the Audi facility in Neckarsulm. Under the plan, manufacturing at these locations would cease as the currently produced models reach the end of their life cycles.
In addition to workforce adjustments, the restructuring blueprint reportedly calls for a major reorganization of Volkswagen’s corporate structure. Both the core Volkswagen brand and its components subsidiary would be spun off into separate legal entities. This approach could facilitate streamlined governance and potentially pave the way for individual brands to access capital markets more easily.
Labor representatives have reacted strongly to the proposed measures. In a joint statement, IG Metall leadership and the Volkswagen works council warned that they would oppose any moves to undermine co-determination rights or the protections afforded by the VW Law. They emphasized that “attacks on our co-determination and sites are irresponsible threats” and expressed concern about the uncertainty these reports cause among employees and regional communities.
Source: WirtschaftsWoche
