Sept. 3 (UPI) -- Volkswagen said Thursday it would cut 50,000 more jobs as the German auto giant faces surging competition from China, high energy prices, and an expensive transition to electric vehicles.
"This is a strong signal for the future of the Volkswagen Group," Chief Executive Oliver Blume said in a statement after a meeting of the company's supervisory board. Volkswagen had been at loggerheads with unions that represent its workers, which are more 650,000 around the world.
However, union leaders on Thursday backed the plan.
"In this crisis situation, we fought hard for good solutions," Christiane Benner, president of the union IG Metall, said in Volkswagen's statement. "The executive board now has the foundation to tackle the major tasks ahead."
The latest job cuts are on top of the 2024 deal Volkswagen made with union leaders to cut more than 35,000 jobs at its German plans by 2030.
The company said its factories in Europe have the capacity to produce 500,000 more vehicles than current demand. The future for production at its Emden, Zwickhau, Hanover, and Neckarasulm factories in Germany will be uncertain from 2031 to 2034. It said it is contemplating other uses for the facilities.
The company called the 12-part "Future Plan 2030" restructuring plan the "most extensive transportation program" in its history.
Volkswagen said a "fundamental adjustment" of its worldwide workforce, including management, was needed beyond current cost-cutting efforts.
No further details about where the cuts would be made, when they would happen, or if they would be achieved through layoffs, buyouts or attribution were disclosed.
Volkswagen also plans to cut its model portfolio in half by 2025 as well as the complexity of its offerings by around 75%. It is aiming to sell about 9 million vehicles per year and achieve a 9% operating margin by 2030.