Volkswagen Approves 50,000 More Job Cuts

Volkswagen’s supervisory board on Thursday approved a transformation plan that will cut a further 50,000 jobs worldwide as the automaker seeks to counter US tariffs, excess capacity and strong Chinese competition. The reductions will come on top of another 50,000 positions already being eliminated.

The plan amounts to the most extensive restructuring in Volkswagen’s 89-year history. The company has not provided a timeline for the additional cuts or said how they will be distributed across its brands and regions.

Over the next 10 months, discussions will also take place over the future of plants in Emden, Zwickau, Neckarsulm and Hannover. The sites face staggered model phase-outs from 2031 onward, prompting management to explore alternative uses for them.

The agreement also averted a major confrontation with unions and the state of Lower Saxony, Volkswagen’s second-largest shareholder. A possible extraordinary general meeting, which management had considered using to push through its plans, has been put on the back burner. The plan will also simplify the group’s structure and limit the supervisory board’s influence over key decisions.

Volkswagen shares closed 7.9% higher following the announcement. Industry analyst Ferdinand Dudenhöffer described the outcome as a ceasefire rather than peace.

The company is under pressure from US import tariffs and a weakening Chinese market, once a major source of profits for the group.

(Reuters, bak)