Volkswagen Board Approves Cutting 50,000 Jobs and Closing Four Plants
· Business · The Independent, Reuters, New York Times
Volkswagen's board of directors approved a restructuring plan on Thursday to eliminate 50,000 jobs, halve its vehicle model lineup, and end auto production at four German plants. Combined with 50,000 previously agreed position cuts, the automaker will shed 100,000 total jobs. CEO Oliver Blume advanced the cost-cutting initiative to address low-cost competition in China and American tariff pressures following a 30 percent drop in first-half after-tax earnings. Production at plants in Emden, Zwickau, Hannover, and Neckarsulm will phase out between 2031 and 2034 while alternative site uses are evaluated. Chief employee representative Daniela Cavallo acknowledged the measures as a necessity for the company's future.
Why it matters
The deep cuts mark a major contraction for Europe's largest automaker as it struggles with falling Chinese sales and competitive pressures.
Read the original report — The Independent
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