Volkswagen to cut 100,000 jobs by end of decade

German car manufacturer Volkswagen has announced plans to cut 100,000 jobs over the next decade, marking the largest restructuring ever carried out in the global automotive industry. The company, which includes brands such as Audi and Porsche, is facing challenges due to US tariffs, fluctuating demand for electric cars, and intense competition, particularly from China.

This job reduction, equivalent to 15% of Volkswagen's global workforce, surpasses the 50,000 job cuts General Motors implemented during its bankruptcy in 2009.

Volkswagen, alongside its 10 other brands, aims to align workforce levels with economic realities. The reduction plan includes 50,000 jobs already approved, in addition to the remaining 50,000 jobs to be cut. However, the fate of four German plants - located in Hannover, Emden, Zwickau, and Neckarsulm - is uncertain. Martin Lehmann, a worker at the Zwickau facility since 2012, expressed concern about the potential closure, stating that it would leave a "big black spot on the map" for the region.

The approval of the job cuts by Volkswagen's supervisory board, comprised of labor and shareholder representatives, signifies progress in ongoing negotiations. CEO Oliver Blume emphasized that the board's unanimous approval sends a strong message about the future of the Volkswagen Group. However, the agreement was not without controversy.

Unions had accused management of withholding information and accused the company of attempting to bypass the supervisory board's approval process. In response, Volkswagen agreed to modify the supervisory board's powers, potentially reducing the influence of unions that hold half of the board's seats.