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German automaker Volkswagen has approved the biggest restructuring plan in its history, with around 50,000 jobs to be cut worldwide under its ‘Future Plan 2030’.
The company said the move is aimed at boosting competitiveness amid weak demand, intense global competition and rapid technological changes. Volkswagen targets an operating profit margin of 9 percent by 2030.
The automaker is also reviewing excess production capacity in Europe, which currently exceeds market demand by more than 500,000 vehicles a year. The future of plants in Emden, Zwickau, Hanover and Neckarsulm will be assessed, with decisions expected by June 2027.
Volkswagen plans to halve its number of car models and reduce product complexity by 75 percent, discontinuing poorly performing models. Reports have also suggested the possible discontinuation of its SEAT brand, while premium marque CUPRA is expected to continue.
