Major revision plan from Volkswagen: 50,000 additional job cuts approved by supervisory board

A comprehensive restructuring plan has been approved at German automotive giant Volkswagen. According to a statement from the company, the revision package presented by the board of management, titled the "Future Plan," was unanimously accepted by the Volkswagen Supervisory Board.

The plan aims to reduce the global workforce by an additional 50,000 positions, decrease model diversity, and shrink the company's industrial footprint. As part of its cost-saving measures, Volkswagen also plans to reduce its vehicle portfolio by 50 percent by 2035.

The company's statement noted that aligning workforce capacity with economic conditions has become inevitable due to increasing global competition, shifts in demand balances, and the accelerating technological transformation in the automotive sector.

Volkswagen CEO Oliver Blume stated that the decision is a strong signal for the company's future. "We will invest hundreds of billions of euros in the coming years to make our iconic brands more attractive, stronger, and more competitive," Blume assessed.

LOSSES IN THE CHINESE MARKET WERE A FACTOR

The announced reduction of 50,000 people at Volkswagen, which has approximately 650,000 employees, corresponds to about 8 percent of its total workforce. Although German media reports have suggested that total layoffs could reach 100,000, no official statement regarding this claim has been made by company officials.

The weakening of the Asian market is cited as one of the primary reasons behind the decision. Volkswagen had announced a 30 percent drop in its after-tax profit in the first half of the year, driven by sales losses in China, one of its most critical markets.

The Supervisory Board's approval has also averted a potential corporate crisis within the company. According to reports in the German press, the Porsche and Piëch families and the board of management had signaled that they could call for an extraordinary general meeting if the plan were rejected.

News Source: 12punto