Volkswagen Plans Massive Job Cuts

German automotive giant Volkswagen is preparing for one of the largest workforce reductions in the history of the automobile industry. The company said its management and labour unions have agreed on a plan to cut up to 100,000 jobs by the end of this decade. Volkswagen had initially planned to reduce its workforce by 50,000 positions and has now approved an additional 50,000 cuts. With around 667,000 employees across the group, the planned reduction would represent nearly 15% of its total workforce.

Volkswagen said adjusting its workforce to match the company’s financial requirements was necessary and also outlined plans to close four plants in Germany. The move comes amid high costs associated with electric vehicle production, intense competition from Chinese automakers and pressure from international tariffs. The group operates brands including Volkswagen, Audi, Porsche, Lamborghini, Bentley, Scania and Ducati. If implemented, the restructuring would rank among the biggest workforce reductions in automotive history.