Volkswagen Says Cutting 100,000 Jobs By End Of Decade

German car manufacturer Volkswagen has announced plans to cut 100,000 jobs by the end of the decade, marking the largest restructuring ever seen in the global automotive industry. The reduction, which will amount to around 15% of the company's worldwide workforce, involves around 50,000 jobs already agreed upon and an additional 50,000 set to be cut. This move comes as Volkswagen faces challenges from US tariffs, fluctuating demand for electric vehicles, and intense competition, particularly in China.

The decision to cut jobs will also affect four manufacturing plants in Germany - Hannover, Emden, Zwickau, and Neckarsulm. For the first time in its history, Volkswagen may close full-scale factories on its home turf. Martin Lehmann, a worker at the Zwickau facility since 2012, expressed concern over the potential impact on the local economy, stating that the closure of the plant and the jobs associated with it would leave a "big black spot on the map."

After months of negotiations between management and unions, the supervisory board, comprised of both labor and shareholder representatives, has finally approved the executive board's plan. CEO Oliver Blume emphasized that this marks progress in delicate negotiations and sends a strong signal for the future of the Volkswagen Group. However, the agreement did not come without controversy. Unions had accused management of withholding information about the job cuts before internal communication, leading to heated debates.

In response to the criticism, Volkswagen announced it would curtail the supervisory board's power, potentially reducing the influence of unions. The supervisory board has asked the executive board to develop a new model for decision-making and group structure, with approval thresholds adjusted to align with standard practices. Despite the agreement, both the IG Metall union and the state of Lower Saxony, which hosts six of the Volkswagen plants, have expressed satisfaction with the compromise reached. They emphasized that no plant closures have been finalized, despite media reports to the contrary.