50,000 Jobs Cut

VW Supervisory Board Approves Cost-Cutting Measures

For Volkswagen, this means tightening its belt. Tens of thousands of jobs within the company are set to be cut.(Bild: AFP/TOBIAS SCHWARZ)

The Volkswagen Supervisory Board has unexpectedly approved the Executive Board’s restructuring plan. The vote was unanimous, the company announced on Thursday following a meeting of the executive committee. The group confirmed that 50,000 jobs will be cut, referring to “adjustments to personnel capacity.” 

The plan for the future creates the conditions to position the Volkswagen Group and its brands to be more efficient, more competitive, and more future-oriented, according to the company’s statement.

In the view of the Executive Board and the Supervisory Board, implementing the plan for the future is absolutely essential to maintain the Volkswagen Group’s competitiveness and secure it sustainably for the future.

Tens of Thousands of Jobs to Be Cut
Previously, the “Bild” newspaper had quoted from the resolution in question, which, among other things, puts up to 60,000 positions—including management roles—up for review. The plan is to start with approximately 47,000 jobs worldwide; plants in Europe will also be affected. According to the draft, the restructuring is expected to cost at least 6.6 billion euros, and up to 10 billion euros in extreme cases. This adjustment to global workforce capacity is necessary to achieve the goals of the transformation program, the statement said. 

There is still no official statement regarding the rumored discontinuation of the Seat brand; a decision on this is presumably not expected until Friday. On Thursday, *Wirtschaftswoche* reported, citing the executive board’s decision, that SEAT would no longer be included in the 2030 vision and that the brand is set to be phased out by 2029.

Four Plants Face an Uncertain Future
The future of several German plants also remains uncertain. According to the Executive Board, production is scheduled to wind down in Emden and Zwickau in 2031, at the commercial vehicle plant in Hannover in 2032, and at the Audi plant in Neckarsulm in 2034. The company stated on Thursday evening: “For the Emden, Zwickau, Hanover, and Neckarsulm sites, no competitive follow-on use can be guaranteed on a phased basis from 2031 through 2034.” “Alternative uses” for these plants are being “examined in parallel and as a supplement.” This plan has recently met with fierce opposition from politicians and employee representatives.

Germans Support Government Assistance
The Volkswagen Group, which also includes Porsche, Audi, and Skoda, is one of Germany’s largest employers, with over 298,000 employees nationwide. According to a survey by ARD-Deutschlandtrend, many Germans therefore support political aid for the struggling automakers.

According to the results published on Thursday, a majority of supporters of all political parties favor limiting electric vehicle subsidies to cars produced in Europe—in order to curb cheap competition from China. Sixty-two percent generally want government assistance for manufacturers to keep jobs and production in Germany.