Volkswagen's Frankfurt-listed shares rose more than 8% on Thursday after its supervisory board approved a plan to cut 50,000 additional jobs, doubling its total workforce reduction target to about 100,000 positions by 2030, roughly 15% of its global staff. The market cheered the move, which is part of a 12-part overhaul called the most extensive transformation in the company's 89-year history, aiming for a 9% operating margin by 2030, up from 3.8% in the first half of this year. The plan also includes halving its model lineup and reducing vehicle complexity by about 75%, while reviewing the future of four German plants. Union support, representing over 650,000 workers, helped avoid a strike and eased tensions with Lower Saxony, its second-largest shareholder. However, risks remain, including projected China joint-venture profit falling to between 200 million and 600 million euros this year, down from 958 million euros in 2025, and competitive pressure from Chinese EV makers like BYD.
Volkswagen AG VZO O.N.Approved plan to cut 50,000 jobs and overhaul operations, targeting higher margins
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Volkswagen AGApproved plan to cut 50,000 jobs and overhaul operations, targeting higher margins
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