Volkswagen board approves turnaround plan, flags 50,000 possible job cuts across group

​Volkswagen's supervisory board unanimously approved on Thursday ​a transformation plan that could ‌include cutting ​another 50,000 jobs in its attempt to counter tariffs, overcapacity and Asian rivals.

The plan, the most extensive restructuring in ‌Volkswagen's 89-year history, includes exploring alternatives for four German plants with no firm production plans for the next decade. It includes a simplification of Volkswagen's conglomerate structure as well as limits to the ‌influence of the supervisory board — on which unions and shareholder Lower Saxony hold ‌a majority — on key decisions.

"This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide," CEO Oliver Blume said in ⁠a ​statement. The "Future Plan," presented by ⁠Volkswagen's management board and approved at a supervisory board meeting, comes as Europe's largest carmaker faces pressure from ⁠all sides, squeezed between U.S. import tariffs and a weak Chinese market.

Volkswagen said "a further fundamental adjustment ​of the global workforce capacity" was needed, saying this would include a reduction of around ⁠50,000 positions worldwide — in addition to a 50,000-job reduction under way. The company did not provide further details ⁠on ​the timing of the workforce reduction or how the cuts would be distributed across its brands and regions.

The deal follows weeks of tense negotiations that pitted the board and ⁠majority owner Porsche SE against unions and Lower Saxony, with management considering an extraordinary general meeting ⁠to push through ⁠its demands. The company cited increasing global competitive pressure, changing demand patterns and technological change in the automotive industry as reasons for the ‌planned measures.