Volkswagen warned of 'major conflict' with staff as job cut protests erupt

Germany's IG Metall union warned on Thursday that Volkswagen management risks a 'major conflict' with workers as the struggling automaker pushes forward with what could be the industry's biggest restructuring. Employees staged protests over reported plans to cut up to 100,000 jobs and close four factories.

Volkswagen, already set to cut 50,000 jobs in Germany by 2030 (including 35,000 at its core brand), is now considering an additional 100,000 job cuts worldwide—about 16% of its global workforce—and closing three VW plants and one Audi factory, according to Manager Magazin.

'We will not stand by and do nothing if the company does not change course,' said IG Metall official Thorsten Groeger. Union chief Christiane Benner and works council head Daniela Cavallo vowed to stop the plans 'with all our might.' Protests took place outside plants as executives presented restructuring plans to the supervisory board.

The board, where labour representatives currently hold a majority after a resignation, may face months of negotiations. Lower Saxony, home to VW's headquarters and six factories, holds a blocking minority. If approved, the cuts would reduce VW's global workforce of about 630,000 by roughly 15%, surpassing GM's 2009 job cuts.