Shares in Volkswagen rose on Friday following the automaker’s announcement of a sweeping restructuring plan that averts conflict with unions and the shareholder state of Lower Saxony.
The company revealed on Thursday that it will cut a total of 100,000 positions by the end of the decade, marking what is likely to be the most significant restructuring in global car history. Management and trade unions approved a plan reducing an additional 50,000 roles, building upon 50,000 redundancies already agreed upon.
In a statement, the Volkswagen Group—which includes Audi and Porsche—emphasized the need to systematically align workforce levels with economic realities. The total reduction represents approximately 15% of the company’s global workforce and surpasses the 50,000 job cuts General Motors enacted after its 2009 bankruptcy.
Tensions had previously surfaced between unions and management, with workers accusing leadership of failing to communicate honestly after the cut figures were leaked to the media before being shared internally.
Volkswagen also warned that the long-term future of four major German facilities in Hannover, Emden, Zwickau, and Neckarsulm remains uncertain. Closing these sites would constitute the first full-scale shuttering of Volkswagen factories in its home country.
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