Volkswagen management has informed staff representatives that the previously negotiated reduction in roles will not be sufficient, a works council note said, according to a report on Monday. The note added that management had not supplied employee representatives with specific figures for any additional job cuts.
Separately, two people familiar with internal deliberations told reporters on Friday that the automaker is assessing the possible closure of four factories in Germany and could widen workforce reductions to as many as 100,000 positions. If pursued, the scale of such cuts would amount to one of the largest restructurings in the automotive sector.
The German government weighed in on Monday, expressing a clear preference that Volkswagen not shut its domestic plants while also recognising that the ultimate decision lies with the company. A government spokesperson said: "Our aim is to prevent the closure of sites in Germany." The spokesperson added that the state must put in place suitable framework conditions to keep the facilities operational, which includes establishing competitive mechanisms and providing incentives to ensure those sites remain profitable.
On the point of corporate decision-making, the spokesperson reiterated that such choices are made on commercial grounds by companies. "In principle, however, it is always up to the companies to make these decisions on commercial grounds," the spokesperson said.
The works council note and the separate reporting from two people familiar with the matter together portray a company in active deliberation over its workforce and production footprint in Germany. Management has signalled that previously agreed measures are insufficient, but has not yet detailed the scale or the timing of any additional actions. The prospect of plant closures and a potential expansion of job reductions to 100,000 roles has prompted comment from government officials, who emphasised the need for incentives and competitive conditions to keep domestic sites operating.
For now, the situation remains fluid: management has communicated dissatisfaction with current plans to employee representatives, and outside reports indicate options under consideration, but specific new numbers or final decisions have not been provided publicly.