VW Approves Plan to Cut 50,000 More Jobs in Broad Overhaul

Volkswagen's supervisory board has approved a restructuring plan that will eliminate 50,000 jobs, marking one of the largest workforce reductions in European automotive history. The overhaul, backed by the board, gives CEO Oliver Blume a clear mandate to shrink the automaker's industrial footprint and reduce its model lineup.

The job cuts represent a significant escalation in Volkswagen's cost-cutting efforts as the company grapples with slowing electric vehicle demand, increased competition from Chinese manufacturers, and margin pressure across its core European markets. The restructuring will trim the company's production capacity and streamline operations across multiple plants.

Blume's plan calls for fewer vehicle models in the portfolio, suggesting a strategic pivot away from the sprawling brand architecture that has defined Volkswagen for decades. The move signals management's recognition that the current cost structure is unsustainable amid the industry's transition to electric mobility and intensifying pricing pressure.

The supervisory board's backing provides Blume with the political capital needed to execute deep structural changes that have faced resistance from labor unions and worker councils, which hold significant power under Germany's co-determination system.