Volkswagen board approves plan to cut another 50,000 jobs

Volkswagen's board has approved a plan to cut an additional 50,000 jobs by 2030, bringing the total planned workforce reduction to 100,000. This decision is part of a broad turnaround program aimed at safeguarding the company's competitiveness amidst shifting demand and technological change. The German car giant, which encompasses brands like Audi, Porsche, and Skoda, is facing declining profits due to falling sales and intense competition, particularly from Chinese manufacturers. Volkswagen's CEO, Oliver Blume, stated the move is a "strong signal" for the firm's future and demonstrates responsibility towards its workforce. The company will also focus on producing fewer, more compelling vehicle models to lower costs.

Volkswagen, Europe's largest carmaker, announced a significant restructuring plan that will result in the reduction of 100,000 jobs by 2030, representing approximately 15% of its workforce. This decision, agreed upon by management and unions, is driven by challenges including US tariffs, fierce competition from Chinese rivals, decreasing sales in China, and long-standing issues with falling profits and overproduction in Europe. The plan also includes halving the number of car models produced and potentially closing four German production plants. The supervisory board has unanimously approved these proposals, which CEO Oliver Blume described as a strong signal for the group's future.