VW chief confirms plan to cut 50,000 jobs as board rejects plant closures

Volkswagen intends to reduce production of cars from a pre-pandemic level of 12m cars a year to 9m. Photograph: David Hecker/AFP/Getty Images View image in fullscreen Volkswagen intends to reduce production of cars from a pre-pandemic level of 12m cars a year to 9m. Photograph: David Hecker/AFP/Getty Images VW chief confirms plan to cut 50,000 jobs as board rejects plant closures Oliver Blume tells staff restructuring proposal includes ‘controversial decisions’ but he has broad support Business live – latest updates The chief executive of Volkswagen has confirmed plans to cut 50,000 more jobs despite the carmaker’s supervisory board rejecting his plan to shut four factories in Germany . Oliver Blume told staff on Monday that proposals for a sprawling restructuring was “the most comprehensive realignment in the company’s history” and revolved around “12 initiatives, approximately 150 pages and 45 individual resolutions” for change. In his most detailed explanation of the management blueprint for the future, Blume told staff that “despite some decidedly controversial decisions” on the table, he had perceived “broad support on the supervisory board” of his analysis of the group’s future and the need for action. High court rejects most of ‘dieselgate’ claims brought by 1.6m UK car owners Read more Last Thursday, the board spent hours hearing Blume’s proposals, previously leaked, with staff protests at all sites for Volkswagen, Audi and Porsche brands across Germany. Asked about staff concerns about jobs, Blume – who has positioned himself as a Volkswagen insider – said he was “doing everything in his power” to keep the company competitive enough to survive. He promised to enter into “constructive discussions” with staff. Blume joined Audi at 28, working as a planner in Audi’s body shop and paint operations, before rising through the ranks to head Porsche and then taking on the leadership of the entire group in 2022. “I can fully understand how deeply the current situation affects people within the company, as well as everyone in its immediate circle. I have spent my entire professional life with the group,” he said. He said the 2024 programme to reduce the workforce by 50,000 jobs was already taking place in a “socially responsible manner” involving voluntary redundancy packages and partial retirement arrangements. The company has already cut 37,000 jobs from the workforce through these schemes, but a second phase of cuts aimed at reducing overheads was now necessary, he added. Blume said in the memo that a further 50,000 jobs may now be cut if the carmaker’s costs were not reduced. He said company benchmarking put its overheads at 20% above comparable companies. “Since half of our overhead costs result from personnel costs, a theoretical calculation – assuming no change in labour costs – would result in the elimination of approximately 50,000 positions worldwide,” he said. He confirmed there was still a question mark over four factories, three Volks