Volkswagen to cut quarter of management roles as German plants face closure risk

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Volkswagen CEO Oliver Blume announced on Wednesday that the company would cut a quarter of its management positions as part of broader cost-saving measures, telling employees at the Emden plant that “all departments must contribute” . The move comes amid plans to reduce up to 50,000 jobs globally, with German sites potentially bearing half the cuts, and four factories—Emden, Zwickau, Hannover, and Neckarsulm—facing possible closure after 2030 .
Blume visited Emden and Zwickau on Wednesday, where workers expressed frustration over the lack of clarity. In Zwickau, Thomas Knabel of the IG Metall union said “the decisive questions have not been answered,” while Mike Rösler, head of Volkswagen Sachsen’s works council, described a “mixed mood” among staff . The Zwickau plant, which has produced only electric vehicles since 2020, had previously met cost-reduction targets set by the company .
Blume acknowledged the competitive pressure on German sites, noting that labor costs in Emden are more than double those at comparable European plants . The company has not finalized any plant closures, but union representatives warn that up to 140,000 jobs could be at risk if the four threatened German sites shut down .
Meanwhile, Hyundai Motor Company CEO José Muñoz unveiled a five-year plan on Wednesday to launch over 100 new models and increase global production capacity by 1.27 million vehicles by 2030, targeting a 6% market share and an operating margin above 9% . Muñoz, the first non-Korean president of Hyundai, framed the expansion as a response to competition from Chinese manufacturers and U.S. tariffs.
At Emden, Blume reiterated that Volkswagen must adapt to industry shifts, including electric mobility and software, while facing rising competition from Chinese automakers flooding Europe with cheaper electric vehicles . The company’s profits in China have nearly vanished, and U.S. tariffs have cost billions, according to Der Standard .
Blume’s tour of German plants follows days of protests, including a whistle concert at Wolfsburg and demonstrations in Zwickau . The IG Metall union has signaled plans for a “hot autumn” of protests, while Volkswagen’s supervisory board is set to meet on Sept. 4 to discuss the restructuring .
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