Volkswagen AG is reportedly exploring options to significantly reduce its workforce and potentially close several manufacturing plants, as part of efforts to enhance the competitiveness of Europe's largest carmaker, according to a report.
The plan, reportedly put forward by the CEO during a recent executive board meeting, could see job cuts double to a maximum of approximately 100,000 positions. The parent company of Porsche and Audi currently employs around 657,000 people.
This new restructuring proposal is expected to be presented to the company's supervisory board for discussion next month. Volkswagen's restructuring efforts have often faced dilution in the past due to labor representatives holding half the seats on the supervisory board.
The reported strategy also aims to achieve administrative cost savings of 11 billion euros (approximately 12.5 billion US dollars) by the end of the decade. Additionally, it includes plans to shut down four German plants in the medium term. These facilities reportedly include an Audi plant in Neckarsulm, as well as Volkswagen plants located in Hanover, Zwickau, and Emden.
A company spokesperson stated that Volkswagen AG "must undergo profound changes" but declined to comment on the specifics of the magazine report. The spokesperson added that the executive board has "been actively developing a forward-looking corporate restructuring plan over the past few months."
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