Volkswagen in Crisis to Cut Another 50,000 Jobs

[Financial News] The supervisory board of German automaker Volkswagen Group approved a sweeping restructuring plan on the 3rd (local time), including cuts affecting 50,000 employees.
Volkswagen Group said in a press release that "the supervisory board unanimously approved the '2030 Future Plan' proposed by management."
Volkswagen said, "The supervisory board acknowledged that Volkswagen Group's current production capacity in Europe exceeds demand by more than 500,000 vehicles, and that it is currently impossible to secure future production volumes at the Emden, Zwickau, Hanover, and Neckarsulm plants on a phased basis from 2031 to 2034." Accordingly, the company is reviewing alternative uses for these plants.
Volkswagen said it would "discontinue approximately half of its models by 2035 in order to focus on competitive models."
Regarding workforce restructuring, Volkswagen explained that "additional adjustments are necessary apart from the existing programs," adding that "according to the analysis of the '2030 Future Plan,' adjustments affecting approximately 50,000 jobs across the group, including management, are expected to be necessary."
The 50,000 job cuts included in this plan will be in addition to the 50,000 reductions that have been underway since 2024.
Volkswagen has suffered a major blow from intensifying competition with Chinese automakers, U.S. tariffs, and sluggish European sales following the pandemic.
Vehicle sales in the first half of this year fell 8.4% from the same period a year earlier, while operating profit declined 11.6%.

[email protected] Lee Seok-woo, International Affairs Specialist Reporter