Volkswagen says cutting 100,000 jobs by end of decade

German auto manufacturer Volkswagen has announced plans to cut 100,000 jobs by the end of the decade, the largest restructuring in the global automotive industry. This reduction, comprising 50,000 additional jobs on top of a previously agreed 50,000, is a direct response to challenges including US tariffs, uncertain demand for electric vehicles and intense competition, particularly in China.

The restructuring decision marks a significant shift for Volkswagen, a company with a presence in 10 brands including its namesake, Audi, and Porsche. It eclipses the 50,000 job cuts General Motors made following its 2009 bankruptcy.

Four plants in Germany - Hannover, Emden, Zwickau and Neckarsulm - may close, marking the first time Volkswagen has shuttered factories in its home country. Local resident Martin Lehmann, who has worked at the Zwickau facility since 2012, expressed concern over the potential impact on the region.

The approval of these plans by Volkswagen's supervisory board, representing both labor and shareholder interests, signals progress in negotiations between the two parties. CEO Oliver Blume hailed the decision as a strong signal for the company's future. However, the agreement has been contentious, with unions accusing management of not being transparent with workers about the job cuts.

A key change in decision-making structure has been agreed upon, with the supervisory board ceding some power to the executive board. This alteration could help mitigate the role of labor representatives who hold half the supervisory board seats. Despite these changes, no plant closures have been officially approved.