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Volkswagen workers jeer CEO Oliver Blume over mass layoff plans
Volkswagen CEO Oliver Blume faced boos and whistles from staff as he outlined a major restructuring that could see tens of thousands of jobs cut, with half the losses in Germany.
By Charlotte Redford · 3 min read
Volkswagen chief executive Oliver Blume was met with jeers, whistles and angry chants from employees as he presented the company’s sweeping restructuring plans, which are expected to involve tens of thousands of job cuts. Speaking at a staff meeting in Wolfsburg, Blume described the programme as “the biggest transformation in the history of our company” and urged workers to “pull together” — a message that landed poorly with an audience facing an uncertain future.
The German carmaker has not confirmed exact numbers, but reports suggest around 100,000 positions could be affected. Blume said half of the redundancies would fall in Germany and half abroad, though he declined to give a precise figure. He insisted that compulsory dismissals should be avoided, pointing instead to early retirement schemes, voluntary departure packages, natural staff turnover and a partial recruitment freeze as the preferred tools for reducing headcount.
The announcement comes as Volkswagen struggles with costs that are roughly 30 percent higher than those of comparable manufacturers, alongside weak sales, import tariffs and intensifying competition from Chinese rivals, particularly in the vast Chinese market. Blume described the situation as “more than critical” and said the global automotive industry was in a “mega-crisis”.
He also said the company aimed to reach “viable prospects” for all its sites over the coming year, a phrase widely interpreted as a warning that some factories may close if they cannot be made competitive. Blume stressed that plant closures would only be considered as a last resort, but the threat has done little to calm workers, who greeted his speech with protest banners and sustained hostility.
The restructuring plan still requires approval from the works council, shareholders and the state of Lower Saxony, which holds a significant stake in the company. Given the anger on the shop floor, that approval is unlikely to come easily. Trade unions have already signalled their opposition and have not ruled out strikes.
Blume held the first of nine scheduled staff meetings on Wednesday and will continue addressing employees in the coming days. The mood at the Wolfsburg event suggests that winning over the workforce will be one of the toughest challenges of his tenure, as he tries to steer Europe’s largest carmaker through a period of profound change while keeping industrial peace.
