VW Cost-Cutting Measures — Union Calls for a Day of Protest

VW Plans to Intensify Cost-Cutting Measures

According to “Manager Magazin,” VW plans to significantly intensify its cost-cutting measures: Up to 100,000 jobs could be cut worldwide—twice as many as previously planned. Four VW Group plants in Germany are reportedly even facing closure: Hanover, Emden, Zwickau, and Neckarsulm. According to “Spiegel,” vehicle production there could wind down by the end of 2034.

So far, VW has only confirmed that the Group Executive Board is “working intensively on a future plan for the company’s restructuring,” but did not provide any details. The goal is a “comprehensive transformation.” Once the matter has been referred to the supervisory board, this plan is to be implemented.

Group CEO Oliver Blume had already announced in the spring that he was working on a new “Vision 2030” for the group and intended to significantly tighten cost-cutting measures in the process. Blume stated that the cost-cutting measures agreed upon at the end of 2024 were no longer sufficient in light of the worsening business environment.

State Wants to Prevent Plant Closures

A heated exchange is now looming at Thursday’s supervisory board meeting. IG Metall and the VW works council have announced their opposition to the plans. The state of Lower Saxony also opposes plant closures. The state holds a 20 percent stake in VW and has two representatives on the supervisory board. The employee representatives currently hold the majority on the board; IG Metall President Benner is even the board’s vice chair.

According to media reports, the company already has an alternative plan should the proposals fail to pass the supervisory board: In that case, an extraordinary shareholders’ meeting could be convened to let the shareholders vote on the matter themselves. There, too, the state holds a blocking minority under the VW Act and can veto important resolutions.

Cuts of 37,000 jobs already confirmed

Volkswagen has already announced that it will cut 50,000 jobs across the group in Germany by 2030. 35,000 jobs are to be cut at the core brand, with the remainder at subsidiaries such as Audi and Porsche. More than 37,000 employees have already signed the relevant agreements.

Vehicle production in Dresden recently came to an end, and the company is currently seeking a solution for Osnabrück, where convertible production is set to end next year.

Thousands protested at Mercedes

Last Friday, there had already been nationwide protests at Mercedes-Benz against the company’s cost-cutting measures. IG Metall reported that a total of more than 33,000 employees took part. The first protests had also taken place at VW that day: According to IG Metall, more than 4,000 employees at the VW plant in Emden, East Frisia, protested against the cost-cutting plans of the Lower Saxony-based automaker.

Most recently, a fierce collective bargaining dispute erupted at VW in 2024. IG Metall brought production to a standstill several times with warning strikes. It wasn’t until shortly before Christmas that a compromise was reached following a week-long marathon of negotiations. Layoffs for operational reasons were ruled out; job cuts will be achieved primarily through partial retirement and severance programs.

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