Abstract:
German car giant Volkswagen Group said on Thursday management and unions had reached an agreement to cut a total of 100,000 jobs by the end of the decade, in the largest reorganization in the history of the global auto industry. The company said it had approved a plan to eliminate about 50,000 more jobs in addition to the 50,000 job cuts it had already finalized.
The group, which owns ten automobile brands, said: "It is necessary to systematically adapt the size of employees to the real economic conditions." In addition to the main Volkswagen brand, the group also owns brands such as Audi and Porsche.
This layoff of a total of 100,000 people is the largest restructuring in the history of the global automotive industry, accounting for approximately 15% of Volkswagen’s total global employees.
This scale exceeds the 50,000 layoff plan implemented by General Motors after it declared bankruptcy and reorganization in 2009.
Volkswagen further stated that management and labor unions agreed that the long-term prospects of the four factories in Hannover, Emden, Zwickau, and Neckarsulm in Germany cannot be guaranteed, and the company is studying other uses for these factories.
If these factories are closed, it will be the first time that Volkswagen has closed a complete production plant in the country.
The Volkswagen Supervisory Board, composed of labor representatives and shareholder representatives, approved the above plans, marking progress in difficult negotiations between the two parties.
Oliver Blum, CEO of Volkswagen, said: "The Supervisory Board unanimously approved the future plan submitted by the Board of Directors today. This sends a strong signal for the future of the Volkswagen Group."
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