Volkswagen Group CEO Oliver Blume got a torrid reception when he fronted 10,000 workers on Tuesday to tell them that the company has to undertake drastic restructuring that could result in massive job losses and plant closures.

Blume (pictured below) was reportedly booed and jeered as he addressed staff at VW’s plant in Wolfsburg, especially when he told them “everyone needs to pull together now” as the car giant pushes to simplify its model range and reduce capacity. The huge revamp could result in as many as 100,000 positions being cut.

Oliver Blume
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Workers bearing signs shouted slogans like “our jobs are not your balance sheet adjustments” as the CEO told them about the proposals, saying: “Our plan for the future is the largest transformation programme in our company’s history.”

It was the first time Blume has spoken about the restructuring since the measures were made public earlier this year. The plans suffered a setback in July, when the company’s supervisory board rejected key parts of the proposed overhaul. Some of the most far-reaching measures, including deep staff cuts and plant closures, were shot down when labour representatives on the board voted against them by 12 votes to seven.

A programme to cut 50,000 jobs has been underway since 2024, using voluntary redundancies and partial retirement packages to help make the cuts. It has been reported that Blume told the workers that a further 50,000 positions need to be slashed.

Volkswagen labour chief Daniella Cavallo reportedly told the workers: “Our trust in this company’s executive board, and especially in its CEO Oliver Blume, has been damaged. Not yet beyond repair, but damaged nonetheless.” 

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Slowing demand, growing competition from Chinese carmakers and the effect of US tariffs have combined to leave Volkswagen in deep trouble. Despite the board’s vote, the company will press on with other objectives that don’t require such approval. These include shrinking production capacity, decreasing investment spending and cutting down the overgrown model range.

Staff protests had been held at VW Group production sites for Volkswagen, Porsche and Audi since the radical cost-cutting measures were first announced. The fiery Wolfsburg meeting is the first of a series of staff addresses to be held over coming days, and Blume was joined by VW brand chief Thomas Schäfer.