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The company stated that the choice aligns with Group CEO Oliver Blume's strategy to enhance competitiveness in light of challenges posed by Chinese producers and the effects of US tariffs.
The company explained that the initiative includes cutting the model lineup by around 50%, along with assessing the utilization levels at its manufacturing locations in Emden, Zwickau, Hanover, and Neckarsulm. Volkswagen highlights that it possesses surplus capacity in Europe of around 500,000 vehicles.
The board's announcement indicated that the headcount changes will impact around 50,000 roles, which include managerial positions. Plans include streamlining management structures and decreasing the length of decision-making processes.
Employee representatives, possessing half the seats on the supervisory board, had earlier condemned the suggested measures but endorsed the plan on Thursday. Works Council Chair Daniela Cavallo deemed the program essential for the organization's enduring viability.
The Lower Saxony government, which has a share in Volkswagen and occupies two board seats, additionally backed the initiative. Regional Minister-President Olaf Lies mentioned that the firm encounters "major challenges" and requires transformation.
Volkswagen, with around 650,000 employees, had earlier announced a 30% decline in net profit for the year's first half due to decreasing sales in China. The lineup consists of the Audi, Skoda, Porsche, and SEAT brands.
source: apnews.com
The company explained that the initiative includes cutting the model lineup by around 50%, along with assessing the utilization levels at its manufacturing locations in Emden, Zwickau, Hanover, and Neckarsulm. Volkswagen highlights that it possesses surplus capacity in Europe of around 500,000 vehicles.
The board's announcement indicated that the headcount changes will impact around 50,000 roles, which include managerial positions. Plans include streamlining management structures and decreasing the length of decision-making processes.
Employee representatives, possessing half the seats on the supervisory board, had earlier condemned the suggested measures but endorsed the plan on Thursday. Works Council Chair Daniela Cavallo deemed the program essential for the organization's enduring viability.
The Lower Saxony government, which has a share in Volkswagen and occupies two board seats, additionally backed the initiative. Regional Minister-President Olaf Lies mentioned that the firm encounters "major challenges" and requires transformation.
Volkswagen, with around 650,000 employees, had earlier announced a 30% decline in net profit for the year's first half due to decreasing sales in China. The lineup consists of the Audi, Skoda, Porsche, and SEAT brands.
source: apnews.com
