Volkswagen Group to cut up to 50,000 jobs amid wider restructuring
New plans will cut product range by around 50 per cent.
Volkswagen Group will drastically cut its car range and reduce its workforce by 50,000 under new plans
The new ‘Future Plan 2030’ has been ‘unanimously approved’ by the Supervisory Board at Volkswagen as the brand looks to cut its costs in the face of competition from China.
As a result, Volkswagen will now look to reduce its model portfolio by around 50 per cent, while it will also ‘reduce its offering complexity’ – cutting the number of trim levels and specifications – by around 75 per cent.
It’ll also reduce its workforce by around 50,000 positions – but this is ‘beyond existing programs’, which means that existing job cuts will continue to be implemented.
Oliver Blume, Volkswagen Group CEO, said: “The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today. This is a strong sign for the future of the Volkswagen Group. We are taking responsibility for our entire team, for our partners and for industrial jobs worldwide.
“Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”
The Group is also looking to develop both its North American and Chinese areas of business, with the former being one of its ‘most profitable segments’.
Hans Dieter Pötsch, chairman of the supervisory board, said: “With the Future Plan now approved, the Supervisory Board and Executive Board of Volkswagen AG have shown that the company’s transformation is being driven forward with full force.”