Volkswagen AG's labor representatives have issued a stark warning that the automaker's planned restructuring may ultimately eliminate as many as 140,000 positions, as management gears up to present a reorganization blueprint to its workforce.
CEO Oliver Blume and Volkswagen brand head Thomas Schäfer are set to unveil the job reduction strategy on Tuesday at the company's primary plant in Wolfsburg, marking the opening session of a series of employee assemblies scheduled across Germany in the coming days.
While the officially announced restructuring could slash up to 100,000 jobs, union members caution that an additional 40,000 workers might face unemployment if factories facing closure risks in Germany are forced to shut down.
Volkswagen's profitability has been severely battered by declining sales in the Chinese market, elevated operational costs in Germany, and underutilized plant capacity. These factors have left the company trailing competitors by roughly 30% in cost efficiency, necessitating at least €10 billion in operational savings.
Management is now devising plans to trim an additional 500,000 vehicles from annual production capacity across Europe, streamline its management structure, and significantly reduce the number of vehicle and equipment variants.
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