Volkswagen Plans Global Cuts of 100,000 Jobs and Closure of Four German Plants

Volkswagen Group plans to cut approximately 100,000 jobs globally and close four of its plants in Germany. The proposal is expected to be discussed on July 9. Olaf Lies, Minister-President of the German state of Lower Saxony, suggested that Volkswagen could consider producing in Germany models developed in China to boost capacity utilization at its domestic plants and safeguard jobs. Volkswagen’s headquarters is located in Wolfsburg, Lower Saxony, where the state holds 20% of the company’s ordinary shares and has representation on its supervisory board. Under relevant regulations, the state government holds veto power over decisions involving plant closures, large-scale layoffs, major asset sales, and relocation of the company’s headquarters. Volkswagen’s production facilities in Germany play a crucial role in the local economy and employment, and related decisions are drawing significant public attention.