Volkswagen applies the brakes. Employees protest
According to Reuters, the German automotive group Volkswagen may face the need to eliminate about 50,000 jobs.
Company CEO Oliver Blume admitted for the first time in front of employees that the reduction could reach even 100,000. positions.
Factors that negatively affected the giant’s market situation include profit decline caused by U.S. tariffs, strong competition in China and pressure to increase productivity to keep up with competitors.
“After agreeing on a reduction of 50,000 jobs across the group, including in subsidiaries Porsche and Audi, the company must take actions to further reduce costs, considering a 20‑percent unfavorable cost difference compared to similar companies,” Blume said.
“We are currently assessing across all brands, companies and regions how many changes are actually necessary and feasible,” he added.
Employees of the conglomerate are protesting, demanding explanations from management regarding the restructuring plans Blume presented to the supervisory board on Thursday.
According to sources familiar with the matter, employee representatives on the supervisory board blocked the proposed actions, which included workforce reduction and the possibility of closing four production plants.
“We still cannot confirm competitive scenarios for using the facilities in Emden, Hanover, Zwickau and Neckarsulm in the 2030s,” Blume said.
He added that the company is considering implementing “smart solutions” for plants with insufficient utilization of production capacity, and among the options being analyzed he mentioned involvement in defense industry production and manufacturing of Chinese Volkswagen models.
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Volkswagen shares on Monday, July 13
Volkswagen shares on Monday, July 13 are at 73,15 EUR (+1.11%).
Since the beginning of the year, the company’s shares have fallen by over 30%.
Chart. Volkswagen share price
Source: TradingView.
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Source: Reuters.
