Volkswagen CEO Oliver Blume has confirmed plans to cut an additional 50,000 jobs, despite the supervisory board rejecting his proposal to close four factories in Germany.
In a detailed briefing to staff on Monday, Blume described the restructuring as the company's most comprehensive realignment and said he believes there is broad support within the board for acting on the group's future needs. He also said the 2024 job-cut programme is already under way through voluntary redundancy and partial retirement, with 37,000 jobs already reduced, and that further cuts could be required if costs are not lowered.
Blume said production would be scaled back from 12 million cars per year to 9 million, warning that Germany cannot ignore overcapacity pressures affecting the industry and jobs.
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