Volkswagen's '100,000 Employee Layoff' Plan Blocked... Board Rejects CEO Restructuring Proposal

Volkswagen's board of directors has rejected Oliver Blume's restructuring plan, with 7 votes in favor and 12 against. The decision has cast doubt on the automaker's layoff and factory restructuring plans, which were aimed at addressing declining demand and profitability. The board's rejection also stalled considerations of closing four German factories. Volkswagen faces structural challenges, including overproduction, with annual sales dropping from around 12 million to 9 million units and profitability declining. Union protests have intensified, with IG Metal demanding job security measures and warning of escalated labor disputes if layoffs proceed. Blume had anticipated broad support for his plan but faced unexpected opposition. Despite reaffirming efforts to maintain competitiveness, employee trust has eroded, with a union newsletter calling for direct employee discussions.