New Layoff Decision from Volkswagen Within the Scope of Restructuring
German automotive giant Volkswagen aims to lay off an additional 50,000 employees under its new restructuring plan, bringing the total employment reduction to 100,000.
German automaker Volkswagen plans to lay off an additional 50,000 employees and streamline its model lineup as part of its restructuring plan.
Restructuring Plan Approved
In a statement by the company, it was noted that Chief Executive Officer Oliver Blume's restructuring plan was unanimously approved by the supervisory board after months of resistance.
Accepted at the Wolfsburg Meeting
The Future Plan, which aims to increase efficiency and strengthen competitiveness, was officially adopted at the board's meeting held in Wolfsburg.
Employment Reduction to Reach 100,000
Volkswagen stated in a subsequent announcement that the plan envisages an additional employment reduction of 50,000, bringing the expected total employment reduction to 100,000.
Model Lineup and Stakes to Be Reduced
The company also plans to reduce its stakes in subsidiaries by 2035 and narrow its model lineup by approximately 50 percent.
Strong Authority Granted to Blume
The decision provides Blume with stronger authority to implement changes deemed necessary to secure Volkswagen's long-term competitiveness.
Struggling with Market Pressures
The Volkswagen Group continues to combat pressures created by high costs, weak demand, and increasingly intense competition.