Volkswagen approves restructuring plan to cut 50,000 jobs
RastinewsGerman automotive giant Volkswagen's restructuring plan, which envisions cutting 50,000 jobs worldwide by 2030, has been approved. The company also aims to reduce annual production by around 1 million vehicles.
Volkswagen's Supervisory Board unanimously approved the "Future Plan 2030" prepared by CEO Oliver Blume's management, following weeks of negotiations.
Under the plan, 50,000 of the Volkswagen Group's approximately 650,000 employees worldwide are expected to lose their jobs. This figure corresponds to around 8 percent of total employment.
The company also plans to reduce the number of vehicle models, streamline its investment and subsidiary portfolio, and cut annual production capacity to 9 million vehicles. This represents a decrease of around 1 million vehicles from the current level.
Future of four German plants uncertain
How the restructuring will affect plants in Germany has not yet been clarified. It was announced that alternative uses would also be considered for the Emden, Zwickau, Neckarsulm and Hanover facilities.
Volkswagen announced that a concept for a sustainable and competitive new production structure would be prepared by June 2027.
CEO Oliver Blume described the plan's approval as "a very strong signal for the company's future."
The VW Works Council and IG Metall, meanwhile, stated that the burden of the restructuring should not be placed solely on employees. Employee representatives emphasized that no final decision on closing any plant has been made at this stage.
Source: DW Turkish / Reuters / dpa