Volkswagen approves plan that could cut 50,000 jobs

Volkswagen’s supervisory board has unanimously approved a major transformation plan that could result in the loss of around 50,000 jobs, including management positions, as the German automaker works to strengthen its competitiveness.

The initiative, dubbed the “Future Plan,” was presented by Volkswagen’s management board and endorsed at a supervisory board meeting on Thursday. According to the company, the plan is aimed at making the Volkswagen Group and its various brands more efficient, competitive and prepared for future challenges.

Volkswagen said further adjustments to its global workforce would be necessary alongside existing restructuring programmes to meet the objectives of the transformation plan and protect the group’s long-term competitiveness.

However, the company did not disclose when the job reductions would take place or how the cuts would be allocated among its different brands and regions.

Volkswagen attributed the planned measures to growing competition worldwide, shifts in consumer demand and rapid technological developments across the automotive industry.

Source: Reuters