Volkswagen CEO Blume confronts up to 120,000 job cuts and plant closures

Volkswagen is undertaking its largest restructuring in decades. CEO Oliver Blume said the group will seek "intelligent" alternatives to factory shutdowns, but warned that up to 120,000 jobs could be cut worldwide and four German sites – Hannover, Emden, Zwickau and the Audi plant in Neckarsulm – are threatened with closure. The company also plans to halve its global model lineup by 2030 and cut variant options by about 75 % to lower complexity and costs. Blume highlighted a 20 % reduction in German plant costs last year and cited strong sales of the ID. Polo, with 50,000 units sold in four weeks, as evidence of the brand’s market strength. The works council, representing more than 40,000 employees at five locations, criticized the lack of direct communication from the CEO, saying trust in management has eroded and demanding answers in post‑summer works meetings. Labour unions and regional politicians have staged protests and warned against the proposed savings plan. The restructuring is driven by slowing demand, especially in China, rising production costs, fierce competition from Chinese EV makers, and a challenging global economic environment.