Volkswagen to cut nearly 50 thousand jobs
The Volkswagen Group supervisory board has approved the largest restructuring program in the group's history. Within the framework of the "Plan for the Future - 2030," it is planned to cut nearly 50,000 jobs, reduce the Volkswagen model lineup by approximately half by 2035, and streamline the business structure.
Volkswagen to cut nearly 50 thousand jobs
Following several weeks of negotiations, the supervisory board of the Volkswagen Group has unanimously approved the "Plan for the Future - 2030" (Zukunftsplan 2030) restructuring program developed by the group's management.
According to information provided by the company, this program will be the largest reorganization process in the history of the German automotive giant.
Under the plan, Volkswagen aims to sell approximately 9 million vehicles per year in the future and increase its annual operating profit to 31 billion euros.
At the same time, the group does not intend to abandon development. Between 2027 and 2031, a total of 135 billion euros is planned to be allocated for investments, research, and the development of new technologies.
One of the most important directions of the restructuring will be a drastic reduction in the range of vehicles produced under the Volkswagen brand.
By 2035, the Volkswagen model lineup will be reduced by approximately 50 percent. It is planned to cut the number of different vehicle configurations by 75 percent.
According to the calculations of the group's management, reducing the number of models will make it possible to produce each remaining model in larger volumes. This is expected to facilitate greater use of standardized parts and lower production costs.
It has not yet been disclosed which vehicles will be discontinued. The remaining models are planned to attract buyers with designs and technologies adapted to the demands of Western and Eastern markets.
The management of the Volkswagen Group has emphasized that production capacities in Europe exceed current needs.
In this regard, the group will undergo a process of "adapting personnel potential." Within its framework, it is planned to cut nearly 50 thousand jobs, including management positions.
However, the company document does not specify whether the cuts apply only to plants in Germany or if they will also cover Volkswagen's divisions in other countries.