Volkswagen Proposes Job Cuts and Factory Closures

Volkswagen is facing significant backlash from its workforce as management announces a €10 billion cost-cutting plan that includes potential factory closures and the end of job guarantees at six plants. The meeting at its Wolfsburg headquarters was marked by strong emotions, with workers chanting against management as CFO Arno Antlitz explained the need for these measures due to a shrinking market and a shortfall in vehicle demand. Works council head Daniela Cavallo expressed fierce resistance, accusing CEO Oliver Blume of prioritizing external deals over job security. The company aims to improve its profit margin from 2.3% to 6.5% by 2026 amidst a challenging economic environment characterized by inflation and competition. Labor representatives are calling for urgent discussions on wage increases and the future of the company, emphasizing that negotiations cannot proceed while plant closures are on the table. Analysts suggest that consensus between management and unions is essential for navigating this difficult period, but the process may not be smooth.