Volkswagen announced its plan to cut 50 thousand jobs and reduce its vehicle portfolio by 50 percent by 2035, with the approval of the board of directors.

In the statement made by Volkswagen, it was stated that the comprehensive revision presented by the company's board of directors and called "Future Plan" was unanimously approved by the supervisory board.

In the statement, it was emphasized that in the face of increasing global competition, changing demand balances and technological transformation in the automotive industry, it is inevitable to align the workforce capacity with economic realities.

According to the statement, the plan envisages a reduction of 50 thousand additional jobs globally, a reduction in model diversity and a reduction in the industrial footprint. Within the scope of savings measures, it is also aimed to shrink the vehicle portfolio by 50 percent by 2035.

Volkswagen Chief Executive (CEO) Oliver Blume, in his assessment of the issue, stated that the decision in question is a very strong signal for the future of the company and said, "We will invest hundreds of billions of euros in the coming years to make our iconic brands more attractive, stronger and more competitive." he said.

While the German press claimed that the total layoffs could reach 100 thousand people, no official statement was made from Volkswagen officials on the subject.

On the other hand, these 50 thousand people correspond to approximately 8 percent of the company's approximately 650 thousand employees worldwide.

The decline in the Asian market was particularly influential in the global automotive manufacturer's decision to make this radical decision. Volkswagen experienced a sharp 30 percent drop in after-tax profit in the first half of the year due to sales losses in China, one of its most critical markets.

The eye-catching board approval also averted a major corporate crisis in the company. According to reports in the German press, the Porsche and Piëch families, who own the company, and the board of directors had threatened to call an "extraordinary general assembly" if the plan was rejected.