Volkswagen Slashes 50,000 Jobs and Closes 4 German Plants Amid 30% Earnings Plunge

Volkswagen's board of directors approved a massive restructuring plan that eliminates roughly 50,000 jobs across the 650,000-employee company. The automaker is permanently ending auto production at its Emden, Zwickau, Hanover, and Neckarsulm plants in Germany due to 500,000 vehicles of excess capacity. Management plans to cut the total number of vehicle models by 50% to drive higher volumes per model and lower fixed costs. The aggressive cuts follow a 30% drop in first-half after-tax earnings driven by US tariff headwinds and intense low-cost competition in the Chinese market. "This is a strong signal for the future of Volkswagen Group." — Oliver Blume