Volkswagen board approves cutting 50,000 more jobs and ending production at 4 plants
The plan adds 50,000 more job cuts and phases out auto production at four German plants as Volkswagen targets lower costs and simpler operations.
- On Thursday, Volkswagen's board approved a sweeping cost-cutting plan to cut 50,000 jobs, slim the model line by half, and end auto production at four German plants.
- Volkswagen, which has around 650,000 employees, reported a 30% drop in after-tax earnings for the first half of the year as CEO Oliver Blume's plan counters low-cost competition in China.
- The company cited excess production capacity of 500,000 vehicles in Europe, noting that "a competitive future production allocation... cannot be secured" for Emden, Zwickau, Hanover and Neckarsulm.
- Chief employee representative Daniela Cavallo stated the plan is "a necessity for our company to move successfully into the next decade," as worker representatives hold half the board seats.
- Lower Saxony Governor Olaf Lies said the company faces "enormous" challenges and the plan represents "a shared path toward the necessary transformation" through leaner leadership structures.
181 Articles
181 Articles
Volkswagen to cut 100,000 jobs by end of decade in biggest restructuring in global auto industry
Volkswagen’s supervisory board approved its most extensive restructuring plan in the automaker’s 89-year history, including an additional 50,000 job cuts worldwide and reviews of four German plants. The overhaul aims to tackle tariffs, overcapacity and Chinese competition while easing tensions with unions and major shareholder Lower Saxony.
The Monitoring Board of the German Autogiant Volkswagen has approved a large-scale restructuring programme called "Plan of the Future – 2030", which aims to reduce about 50,000 jobs and close four factories. According to the plan, the staff of the Convergence worldwide will decrease by about 50,000 jobs – this measure, according to the company, is necessary to achieve the objectives of the transformation programme, transfers TASS with reference …
Why will Volkswagen cut 50,000 jobs? The company seeks to reduce costs in the face of Chinese competition and weak demand.
The Volkswagen Board of Directors has approved an optimization programme that reduces to 50,000 jobs and stops car production at four factories in the Federal Republic of Germany, reporting to the Associated Press.
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