Volkswagen’s chief executive Oliver Blume addressed more than 10,000 employees at the company’s German headquarters on Tuesday, urging a comprehensive reorganisation that may involve job cuts and factory closures. Volkswagen has been grappling with intensified competition from Chinese manufacturers and the impact of U.S. tariffs, prompting a need for cost reductions and operational adjustments. Blume told the assembly that the restructuring was essential for the company’s future, citing the need to align production capacity with market demand. Workers responded with boos, whistles and banners reading “Our jobs are not your balance sheet adjustments,” indicating opposition to the proposed measures. While Volkswagen has not disclosed the number of jobs potentially affected, the plan includes evaluating the viability of multiple production sites in Europe. The developments occur amid a broader industry shift as European automakers confront declining demand and rising input costs. The company has indicated that further details will be released in the coming weeks, and the outcome of the restructuring remains uncertain.