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Volkswagen CEO faces protests over restructuring plans and potential layoffs
Volkswagen said its plan is aimed at keeping all plants viable within six to 12 months, though details of job cuts and closures have not yet been approved by key stakeholders.
Volkswagen CEO Oliver Blume faced boos and whistles at the company’s German headquarters in Wolfsburg after telling more than 10,000 workers that a major reorganization is essential for the automaker’s future, including possible job losses and factory closures, the Guardian Business reported.
Blume said VW’s plan for the future would be the largest transformation program in the company’s history and called on employees to “pull together.” He also said the company’s aim is to create viable prospects for all locations within the next six to 12 months, as he began a tour of VW plants.
The restructuring plans have not yet been approved by VW’s powerful supervisory board, as well as by the state of Lower Saxony and shareholders. Witnesses described the meeting as heated, and they reported that Blume said about half of expected job cuts, often cited around 50,000, would occur in Germany, with the other half internationally across roughly 170 companies, according to the outlet.
Blume also emphasized that the worldwide job cuts calculation is based on costs and described it as a theoretical calculation, adding that Volkswagen’s costs are about 30% above the average of peers, the Guardian Business reported.