Volkswagen board approves cutting 50,000 more jobs and closing 4 plants
FRANKFURT, Germany (AP) — Volkswagen’s board of directors on Thursday approved a sweeping cost-cutting plan that would cut 50,000 jobs, slim the company’s model line by half and end auto production at four German plants. Including 50,000 job losses…
Volkswagen's board of directors has approved a drastic cost-cutting strategy that includes eliminating 50,000 additional jobs and shutting down four manufacturing plants in Germany. This would result in a total of 100,000 job losses across the company. CEO Oliver Blume's proposal aims to address the challenges posed by low-cost competition in China and the impact of U.S. tariffs.
The plan calls for a reduction of around 50% in the number of vehicle models offered by the company. The production at plants in Emden, Zwickau, Hannover, and Neckarsulm will wind down between 2031 and 2034, although alternative uses for these sites are being explored. The board statement indicates that approximately 50,000 positions, including managerial roles, will be affected by these changes.
Volkswagen currently employs about 650,000 workers globally, and the company reported a 30% decrease in after-tax earnings for the first half of the year, primarily due to a decline in sales in China.
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