VW labor leaders say they were kept in the dark on job cut plans

Volkswagen’s German labor leaders have accused management of sidelining them on plans to slash up to 100,000 jobs in Germany, exposing deep governance rifts at Europe’s largest automaker. In an internal document published on VW’s intranet and obtained by Bloomberg News, the works council and IG Metall union stated that top labor representative Daniela Cavallo was not consulted on the cost-cutting strategy. Manager Magazin had reported earlier that VW could double its planned job cuts to 100,000 and shutter four German plants, citing internal management discussions. The report underscores the mounting pressure on CEO Oliver Blume, who has publicly acknowledged that the company remains uncompetitive in critical areas. Volkswagen’s supervisory board, which includes labor representatives holding a majority after an independent member’s departure, is scheduled to meet on July 9 to address the crisis. The looming clash highlights the challenges Blume faces in pushing through aggressive restructuring, as labor holds significant sway—particularly in Lower Saxony, where regional laws grant the state veto power over key decisions, complicating efforts to close major German plants. The governance tension reflects broader struggles at VW as it grapples with shifting market demands and the need to accelerate its transition amid financial strain.