Major overhaul at automotive giant: 50,000 people to be laid off, number of models to be halved

German automotive manufacturer Volkswagen is entering a comprehensive global restructuring process. The company's supervisory board has unanimously approved a plan that envisions the termination of 50,000 employees.

It was stated that the decision would directly affect a segment equivalent to 8 percent of Volkswagen's global workforce of approximately 650,000 people. Within the scope of the approved "Future Plan," significant changes will also be made to the company's production and model strategy.

In line with the plan, the vehicle portfolio is targeted to be reduced by 50 percent by 2035. Shrinking the company's global industrial footprint and reducing model diversity are among the main headings of the savings program.

Volkswagen CEO Oliver Blume announced that hundreds of billions of euros will be invested in the coming years to make the brands more competitive. It was stated that sales losses in China, one of the most important markets, and the 30 percent drop in after-tax profit seen in the first half of the year were influential in the company's decision.

Volkswagen had previously made a decision to reduce its workforce by 35,000 in 2024. It is suggested that with the new package, the total workforce reduction could reach 100,000 people. With the plan passing the board, it is considered that a potential extraordinary general assembly crisis between the shareholder families Porsche and Piëch and the management has been averted.

News Source: 12punto