Volkswagen Board Approves Plan to Cut 100,000 Jobs by Decade End
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The Story
German carmaker Volkswagen's supervisory board approved its "Future Plan 2030" on Thursday, which includes cutting an additional 50,000 jobs worldwide. This brings the total planned job reductions to 100,000 by the end of the decade, adding to 50,000 cuts already underway across brands like Volkswagen, Audi, Porsche, and CARIAD. The 100,000 cuts represent about 15% of Volkswagen's global workforce, which numbers around 650,000 people. The company's shares jumped 8% on the Stoxx 600 on Friday. CEO Oliver Blume stated the plan is the most strategically profound transformation program in the group's 89-year history, aiming for a 9% operating margin by 2030. The company will also simplify its model portfolio by 50% by 2035, reducing its range of about 150 vehicles. Volkswagen faces slumping profits, increased competition from Chinese rivals, and tariff pressures, reporting 2.9 billion euros ($3.4 billion) in tariff expenses for 2025. Tariffs on European vehicles have risen from 2.5% to 15%. Blume cited the loss of Russian energy and Chinese competition as key factors. The plan includes considering alternative uses for four German plants (Hanover, Emden, Zwickau, and Neckarsulm) where future production is not secured beyond 2031-2034. IG Metall, the company's largest staff union, noted concessions were made to avert a dangerous escalation of the conflict during negotiations.
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What they agree on
- Volkswagen's supervisory board approved a plan to cut an additional 50,000 jobs worldwide.
- This new round of cuts brings the total planned job reductions to 100,000 by the end of the decade.
- The job cuts are part of a major restructuring plan, referred to as the "Future Plan 2030."
- Volkswagen also plans to reduce its model portfolio by 50% by 2035.
- The company is facing challenges from increased competition, particularly from Chinese rivals, and tariff pressures.
Where they split
- RT and Deutsche Welle emphasize the scale of the cuts as the "biggest restructuring ever seen in the global car industry" and highlight the potential closure of four German plants.
- CNBC and MarketWatch focus on the positive market reaction, noting Volkswagen's shares jumped after the announcement.
- The Guardian and Reuters provide more detail on the negotiations with unions, describing the agreement as ending a row and averting a potential showdown.
- Deutsche Welle provides a detailed analysis of how Volkswagen's large workforce became a burden, comparing its employee count to Toyota, Stellantis, and Ford.
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