The board of Volkswagen, the German car giant, has approved a plan to cut another 50,000 jobs as part of the largest restructuring in the company's nearly nine-decade history. This decision brings the total number of roles the carmaker plans to shed by 2030 to 100,000, following an earlier announcement in March to cut 50,000 roles.
Future of German Plants
The group, which includes Audi, Porsche, Skoda, and the VW brand, is also evaluating the future of four of its German plants. Oliver Blume, VW's chief executive, stated that this move is a "strong signal" for the company's future, emphasizing that they are "taking responsibility for our entire workforce."
Blume had indicated in July that the firm was looking to make these additional cuts. Following the announcement, shares in the company rose by approximately 7% in Frankfurt on Friday morning.
Challenges Facing Volkswagen
The Golf-maker has faced a decline in profits due to falling sales and intense competition, particularly from Chinese brands. The company also announced plans to reduce the number of models it produces by 50% by 2035 and to simplify its offerings by 75%. VW aims to prioritize the "most compelling vehicles" and increase production of each model to help lower costs.
