Volkswagen’s supervisory board has signed off on eliminating another 50,000 jobs, doubling the size of a restructuring plan first unveiled in March. Combined with earlier cuts, the German automotive giant now aims to shed 100,000 positions by 2030 in what executives describe as the most sweeping shake-up in the company’s nearly 90-year history.
CEO Oliver Blume called the decision a “strong signal” that the company is taking responsibility for its workforce, even as it moves to slash costs. Investors welcomed the news, sending VW shares up roughly 7% on the Frankfurt stock exchange.
Alongside the layoffs, Volkswagen—whose stable of brands includes Audi, Porsche, Skoda, Seat, Bentley, and Lamborghini—plans to cut the number of vehicle models it produces in half by 2035 and simplify its lineup by 75%, focusing resources on its best-selling vehicles to reduce manufacturing costs. The company is also reviewing the future of four German factories, in Emden, Zwickau, Hanover, and Neckarsulm, where it says production capacity now outstrips demand.
The overhaul comes after years of declining profits driven by weakening sales in China, once VW’s most important market, and in the United States, where tariffs imposed under the Trump administration have added pressure. Meanwhile, Chinese manufacturers like BYD have surged ahead globally, offering new technology at lower production costs.
Christianne Benner, head of Germany’s powerful IG Metall union and a deputy chair of VW’s board, said the company had “fought hard” to find solutions to what she called a genuine crisis.
You can read the full BBC report for more details on Volkswagen’s restructuring plans.
Source: Volkswagen board approves plan to cut another 50,000 jobs (feeds.bbci.co.uk). English version produced with AI assistance.
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