Volkswagen Board Approves Cutting 50,000 More Jobs

Volkswagen's board of directors approved a sweeping cost-cutting plan Thursday that will eliminate 50,000 jobs, cut the company's model lineup roughly in half and end auto production at four German plants.

Added to 50,000 job losses the company had already agreed to, Volkswagen is now on track to shed 100,000 positions. CTV News reported that management and unions agreed to the 100,000 total by the end of the decade, calling it the biggest restructuring ever in the global auto industry.

Chief Executive Oliver Blume pitched the plan as an answer to low-cost competition in China and headwinds from U.S. tariffs.

What's in the plan

The board statement described an "adjustment of the employee numbers of around 50,000 positions," including management jobs.

The number of models will fall by around 50 percent.

Plants in Emden, Zwickau, Hannover and Neckarsulm will be phased out of auto production between 2031 and 2034, though the company says alternative uses will be explored.

Reuters reported the plan sets a target of a 9% operating margin by 2030.