The Volkswagen group is bracing for a tumultuous end to summer and a challenging autumn, as the works council estimates that up to 140,000 jobs could be at risk due to a cost-cutting program. This follows a tense supervisory board meeting held several days ago. On Friday, the works council (Betriebsrat) announced that employee assemblies will take place at the end of August at the largest plants, where the group’s management will be required to answer questions from the workforce.
Employee representatives are demanding that the board “finally speak openly” about its cost-cutting plans, according to an issue of the works council magazine “Mitbestimmen” published on Friday. They intend to oppose potential plant closures and had previously warned that they would call assemblies if management did not clarify its intentions. Employee representatives consider the latest internal statement from CEO Oliver Blume to be insufficiently detailed. Blume and Volkswagen brand chief Thomas Schäfer are expected to address several employee assemblies in person.
New estimates of possible cuts
In his statement, Blume publicly mentioned for the first time a figure of 50,000 additional jobs that could potentially be cut worldwide. He indicated that such a number is feasible if overhead costs—covering administration, infrastructure, and internal services—are reduced by 20%, as outlined in the cost-cutting program. The works council has based its own assessment of the potential cuts on these figures.
In Germany, a decision to cut 50,000 jobs was made several months ago. According to Blume, another 50,000 jobs could be eliminated in other countries. Additionally, management is considering the closure of four German plants that employ about 40,000 people. Thus, based on the works council’s calculations, a total of 140,000 jobs could be at risk.
Volkswagen declined to comment on these estimates on Friday, emphasizing that final decisions have not yet been made. The first employee assemblies are scheduled to take place in Wolfsburg on Tuesday, August 25, and on the same day in Brunswick. By August 31, similar meetings are planned in Emden, Zwickau, Chemnitz, Dresden, Kassel, Salzgitter, and Hanover.
Plant closures and personnel decisions
The Audi plant in Neckarsulm is not included in the assembly schedule and will be evaluated separately. This plant is also among those whose future has been called into question, along with facilities in Emden, Zwickau, and Hanover. Following the employee assemblies, the next supervisory board meeting is scheduled for September 4, according to F.A.Z..
Volkswagen is currently in crisis and is seeking to cut costs. Nearly a year after the departure of board member for personnel, Gunnar Kilian, the HR director position remains vacant, with responsibilities temporarily handled by Volkswagen brand chief Thomas Schäfer. The leading candidate for this position is believed to be Erika Rawes, the current personnel director at Bosch, as reported by “Correctiv” and “Handelsblatt”. However, her appointment was not finalized at last week’s supervisory board meeting due to disputes over the new cost-cutting program and the potential establishment of a separate technology division on the board. Neither Volkswagen nor Bosch has commented on these reports.
Source: FAZ
