Volkswagen Group will launch a comprehensive restructuring to cut roughly 50,000
jobs and close four plants, calling it the most far-reaching transformation in
the group's history. The move follows protracted talks with management, unions
and the Lower Saxony state government. The supervisory board confirmed about
500,000 units of excess production capacity in Europe. Emden, Zwickau, Hanover
and Neckarsulm currently have no competitive follow-on production projects over
the next 5–8 years; the group said it is exploring alternative uses. The cuts
will include management positions. CEO Oliver Blume had earlier proposed a
larger package of up to 100,000 job cuts and up to four plant closures.
