Volkswagen is preparing a sweeping restructuring plan that could end vehicle production at several factories in Germany, putting around 40,000 jobs at risk, according to a media report published on Thursday.
German weekly Der Spiegel, citing sources on the company’s supervisory board, reported that Chief Executive Oliver Blume plans to phase out production at the Zwickau and Emden plants within the next five years. The report said production at the Hannover commercial vehicle plant could end in 2032, followed by Audi’s Neckarsulm factory in 2034.
The four sites employ approximately 40,000 workers. Blume is also reportedly seeking to reduce Volkswagen’s global workforce by 50,000 jobs by 2030.
The proposals, described by analysts as the most significant restructuring in the history of the world’s second-largest automaker, were due to be discussed at a supervisory board meeting in Wolfsburg on Thursday.
Germany’s powerful IG Metall union condemned the reported plans and called for a day of action, with a rally scheduled in Wolfsburg to coincide with the board meeting.