Volkswagen chief executive Oliver Blume has confirmed plans to cut 50,000 more jobs, describing the move as part of the most comprehensive realignment in the company's history, after the supervisory board rejected his plan to shut four German plants.
Key facts
- Volkswagen plans to cut 50,000 more jobs, according to the Guardian.
- The supervisory board rejected CEO Oliver Blume's plan to close four factories in Germany.
- Blume called the restructuring 'the most comprehensive realignment in the company's history'.
- The proposal centres on 12 initiatives, roughly 150 pages and 45 individual resolutions.
The chief executive of Volkswagen has confirmed plans to cut 50,000 more jobs, even as the carmaker’s supervisory board rejected his proposal to shut four factories in Germany, according to the Guardian.
Oliver Blume told staff on Monday that the restructuring proposal amounted to “the most comprehensive realignment in the company’s history”.
According to the Guardian, the plan revolves around “12 initiatives, approximately 150 pages and 45 individual resolutions” for change.
Blume acknowledged that the restructuring proposal includes “controversial decisions”, but said he has broad support for the plans.
The decision by the supervisory board to reject the closure of four German factories marks a significant limit on the scope of Blume’s original restructuring proposal, even as the job-cutting plans move forward.
Why it matters
Volkswagen is one of Europe's largest employers, and cuts on this scale carry major consequences for workers and the wider German economy. The clash between management's restructuring ambitions and the board's rejection of plant closures highlights the tensions facing legacy carmakers as they navigate industry change.
Frequently asked questions
How many jobs does Volkswagen plan to cut?
According to the Guardian, Volkswagen plans to cut 50,000 more jobs.
Did Volkswagen agree to close factories in Germany?
No. The supervisory board rejected CEO Oliver Blume's plan to shut four factories in Germany, according to the Guardian.
What did the CEO say about the restructuring?
Oliver Blume described it as 'the most comprehensive realignment in the company's history', built around 12 initiatives, about 150 pages and 45 individual resolutions, and acknowledged it includes 'controversial decisions'.