Volkswagen Approves 100,000 Job Cuts by 2030
Volkswagen's board approved a plan to cut 100,000 jobs. The cuts will happen by 2030.
The total includes 50,000 jobs already agreed to be cut. It also includes 50,000 new job cuts.
Management and unions agreed to these new cuts. Volkswagen said it faces strong competition from China.
It also faces high energy prices and US tariffs. The switch to electric vehicles is costly too.
The plan will cut about 15% of Volkswagen's total workforce. Volkswagen will also cut its model lineup in half.
Four German factories will stop making cars. The company will also restructure and invest in research.
Workers and the government of Lower Saxony resisted parts of the plan. Lower Saxony is a German state that owns part of Volkswagen.
Klear Note — Electric vehicles run on batteries instead of gasoline or diesel engines.
Key Terms 2
- Lower Saxony A German state that owns a stake in Volkswagen.
- tariffs Extra taxes on goods brought into a country.