Volkswagen seals 100,000-job-cut turnaround deal after stakeholder standoff

  • Volkswagen’s board approved a turnaround agreement after management, Lower Saxony and unions reached compromise.
  • The restructuring could affect 100,000 workers and includes threatened closures of four German plants.
  • Volkswagen’s board voted unanimously one day early after management threatened an emergency shareholder meeting.

Volkswagen’s supervisory board unanimously approved a turnaround agreement that clears the way for historic job cuts potentially affecting 100,000 workers, while postponing plans to create separate legal entities for its passenger-car and component divisions. The deal, reached by CEO Oliver Blume, Supervisory Board Chairman Hans Dieter Poetsch, Lower Saxony state premier Olaf Lies and labor representatives, prevented an emergency shareholder meeting (EGM) that could have triggered years of legal disputes. The agreement represents the biggest restructuring in Volkswagen’s 89-year history, but the cuts still require negotiations with unions. Solutions for four German plants remain unresolved as the carmaker faces shrinking margins, competition from China and U.S. tariffs.

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Volkswagen seals 100,000-job-cut turnaround deal after stakeholder standoff - CoinPost Terminal