Volkswagen approves restructuring plan with cuts of 50,000 jobs

Volkswagen's supervisory board unanimously approved this Thursday (3) a transformation plan that could include cutting another 50,000 jobs in the group.

The plan, the biggest restructuring in the company's 89-year history, envisages the search for alternatives for four German factories that do not have concrete production plans for the next decade.

This includes a simplification of the structure of the Volkswagen conglomerate, as well as limits on the influence of the supervisory board, in which unions and the state of Lower Saxony hold a majority in important decisions.

"This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, our partners and manufacturing jobs around the world," Chief Executive Oliver Blume said in a statement.

The "Plan for the Future", presented by Volkswagen's executive board and approved at a board meeting, comes as the automaker faces pressure from all sides, including import tariffs from the United States, Asian competitors and a weaker Chinese market.

Volkswagen said a "fundamental new adjustment of global workforce capacity" is needed, explaining that this includes a reduction of around 50,000 jobs worldwide, in addition to the 50,000 job cuts already underway.

Blume had already admitted in July, amid rumors that more layoffs were on the way, that cuts at the company could reach 100,000 in Germany. At the time, Volkswagen reported that the plans did not apply to factories in Brazil.

At that time, the company also said that it was continuing with its plan to invest R$16 billion by 2028 in the country and develop 17 new cars for the national market, with nine of them already launched.

The company did not provide further details on the timeline for workforce reductions or how the cuts will be distributed across its brands and regions.

The announcement comes after weeks of tense negotiations that pitted the board and majority shareholder Porsche against unions and the state of Lower Saxony, with management considering calling an extraordinary general meeting to approve their demands.

The company cited growing global competitive pressure, changing demand patterns and technological transformations in the automotive sector as reasons for the measures.