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FinanceVolkswagen Supervisory Board approves restructuring plan, 50,000 jobs to be cut
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After months of dispute, Volkswagen's Supervisory Board has unanimously approved the restructuring plan proposed by CEO Oliver Blume, known as the Future Plan 2030. The plan includes cutting approximately 50,000 jobs across the group to address overcapacity of more than 500,000 vehicles in Europe. It also calls for reducing the number of models by up to 50 percent and warns that sites in Emden, Zwickau, Hanover, and Neckarsulm lack competitive follow-up occupancy for 2031-2034. The restructuring could cost up to ten billion euros. Additionally, German magazine Wirtschaftswoche reported that the Spanish brand Seat may be discontinued by the end of 2029 to cut costs, while its successful sister brand Cupra would continue. A Volkswagen spokesperson declined to comment on that report. The plan had previously failed in the Supervisory Board two months ago due to resistance from employees and the state.
Source report
Volkswagen plant in Emden. Source: Chris Emil Janßen/picture alliance
After months of dispute, an agreement has been reached to save the Volkswagen Group. The Supervisory Board has approved the restructuring plan presented by CEO Oliver Blume, with employees facing drastic cost-cutting measures.
The Supervisory Board of Volkswagen has unanimously approved the restructuring plan for Europe's largest car manufacturer. The so-called Future Plan 2030 was adopted on Thursday evening, the group announced in Wolfsburg. The plan includes a "group-wide adjustment of the number of employees amounting to approximately 50,000 jobs to be cut."
Key Details of the Plan
- Overcapacity reduction: Volkswagen must reduce overcapacity of more than 500,000 vehicles in Europe.
- Site risks: For the plants in Emden, Zwickau, Hanover, and Neckarsulm, no competitive follow-up occupancy is secured for the period from 2031 to 2034.
- Model reduction: The plan provides for up to 50 percent fewer models.
- Restructuring costs: The restructuring could cost up to ten billion euros.
Reports on Seat and Cupra
According to a report by Wirtschaftswoche, citing a document from the Board of Management for the Supervisory Board, the Spanish brand Seat should be discontinued "by the end of 2029 at the latest" to reduce costs. The sister brand Cupra, which has been independent since 2018 and is highly successful, would be continued. A VW spokesperson declined to comment on the report.
Background
Two months ago, the Board of Management's savings and future plans were discussed for the first time in the Supervisory Board — and failed due to resistance from employees and the state.
More shortly.
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Volkswagen Board approves plan to cut 50,000 jobs and close four German plants by 2034