Volkswagen’s CEO, Thomas Schaefer, has declared that layoffs and plant closures are inevitable as the automaker seeks to cut €4 billion ($4.2 billion) in costs.
In an interview with Welt am Sonntag, Schaefer emphasized that restructuring must happen within 3–4 years to stay competitive, warning that delaying until 2035 would allow rivals to overtake the company.
While most job cuts could occur through attrition and early retirement, Schaefer said these measures alone would be insufficient. He also acknowledged high labor costs at Volkswagen’s German sites, which are double those in southern and eastern Europe, further straining the company’s financials.
Unions have opposed the proposed cuts and plant closures, threatening strikes in December. Volkswagen has asked workers for a 10% pay reduction, escalating tensions. Schaefer also noted sluggish European demand as another hurdle for the automaker.
