Car giant Volkswagen says cutting 100,000 jobs by end of decade
Volkswagen further said that the future of four German plants could not be assured into the 2030s.
German car manufacturer Volkswagen announced on September 3 that it has reached an agreement with management and unions to cut an additional 50,000 jobs by the end of the decade, marking a total of 100,000 job losses. The German automaker explained that it is crucial to adjust workforce levels according to economic realities. The company had previously approved plans to reduce 50,000 jobs, bringing the total to 100,000.
Volkswagen, Europe's largest carmaker, is facing challenges due to US tariffs, fluctuating demand for electric vehicles, and intense competition from China. The massive restructuring, which represents around 15% of the company's global workforce, will be the largest ever undertaken in the automotive industry. The 100,000 cuts include the uncertain future of four German plants located in Hannover, Emden, Zwickau, and Neckarsulm, marking the first time Volkswagen will close full-scale factories in its home country.
The adoption of the plans by Volkswagen's supervisory board, comprising both labor and shareholder representatives, shows significant progress in negotiations between the two parties. CEO Oliver Blume stated that the supervisory board's unanimous approval of the executive board's future plan is a strong signal for the future of the Volkswagen Group.
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