Volkswagen plans to cut 50,000 jobs

Volkswagen will cut roughly 50,000 more jobs under a restructuring approved Thursday by its supervisory board, as the automaker contends with Chinese competition, high energy costs and an expensive shift to electric vehicles.

Chief executive Oliver Blume called the decision a strong signal for the group's future. Unions, which had been at odds with management over the plan, came around, with IG Metall's Christiane Benner saying labor had fought hard for good solutions in a crisis and that the executive board now has a foundation to move forward. The company employs more than 650,000 people worldwide and has already agreed to shed about 50,000 positions since late 2024.

Four German plants remain in limbo. Volkswagen said it has far more manufacturing capacity than it needs and is assessing alternative uses for the sites in Emden, Hanover, Zwickau and Neckarsulm, which Blume has said lack a clear future beyond 2030.

Conversion to defense production is one possibility as Germany expands military spending. Blume said last month that the company is in talks with defense firms about its Osnabrück site.

Blume has put Volkswagen's costs about 30 percent above comparable manufacturers. Analyst Matthias Schmidt said the need to cut is obvious.