Volkswagen to cut 100,000 jobs by end of decade

German car manufacturer Volkswagen announced on Thursday that it plans to cut 100,000 jobs by the end of the decade, marking the largest restructuring in the global automotive industry. This decision comes after management and trade unions approved a plan that includes an additional 50,000 job cuts, in addition to the 50,000 redundancies already agreed upon. The restructuring aims to align workforce levels with economic realities, accounting for approximately 15% of Volkswagen's global staff.

The decision to cut 100,000 jobs surpasses the 50,000 job cuts General Motors made in 2009 following its bankruptcy. Negotiations between unions and management were contentious, with unions accusing the company of being dishonest about the potential job losses before the official announcement. Volkswagen also revealed that the future of four major German plants – in Hannover, Emden, Zwickau, and Neckarsulm – is uncertain, with their closure potentially having a significant impact on the local economy.

This restructuring is a result of Volkswagen facing challenges such as US tariffs, increased competition from China, and a slow growth in demand for electric vehicles. CEO Oliver Blume emphasized that the decision sends a strong signal for the future of the Volkswagen Group. The company has not disclosed the timing or distribution of the cuts across different regions but stated that it will focus on North America and expand exports to the Global South.

Volkswagen has also committed to investing a significant amount in research and development over the coming years to enhance its technological capabilities and competitiveness.