Volkswagen is bracing for tough times, with mass layoffs and factory closures looming. CEO Thomas Schäfer has confirmed that drastic steps are necessary to secure the company’s future.
In an interview with Welt am Sonntag, Schäfer stated that Volkswagen cannot avoid downsizing.
When asked if all factories could be saved, his response was clear: “We don’t see that happening at the moment.”
Schäfer explained that the company must reduce capacity and adapt to “new realities” in the automotive industry, citing changing market conditions and financial pressures.
Volkswagen plans to shutter three factories in Germany, leaving thousands of workers uncertain about their futures.
Schäfer acknowledged the challenge of finding alternative roles for employees whose jobs are at risk, adding that early retirements and voluntary departures won’t be enough to balance the books.
The pressure is not only on workers.
Union IG Metall has called on Volkswagen’s board to share the burden. In response, executive salaries have been trimmed. Board members’ fixed pay has been reduced by 5%, and they’ve forfeited a €1,000 inflation bonus and a 3.5% salary increase previously agreed upon.
Union Resistance Grows
Tensions are escalating.
Last week, the third round of negotiations between Volkswagen and its unions began amid growing unrest. Thousands of employees have protested, demanding job security and rejecting the prospect of lower wages and reduced staffing.
