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[BUSINESS] · Germany · 8 sources

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Volkswagen faces labor tension over potential 50,000 job cuts

Volkswagen is facing significant internal tension as CEO Oliver Blume implements a cost-cutting program to address low operating margins. Blume has indicated that up to 50,000 jobs worldwide could be at risk due to overhead costs being 30 percent above competitive levels.

In response, Volkswagen works council chair Daniela Cavallo has firmly rejected the possibility of operational redundancies and plant closures. She has called for a “forward strategy” that focuses on social compatibility and job security rather than just labor cost reductions.

Concerns are particularly high regarding the future of the Hannover, Emden, Zwickau, and Neckarsulm plants, where production outlooks for the 2030s remain uncertain. To address these tensions, the company is conducting a series of nine extraordinary works meetings across various locations through the end of August to allow management to explain their plans to the workforce.

Entities

Daniela Cavallo · IG Metall · Olaf Lies · Oliver Blume · Volkswagen · Wolfsburg

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