Volkswagen AG is gearing up for significant changes, with plans to potentially cut more than 15,000 jobs as part of its strategy to close production plants. According to analysts from Jefferies, the automaker may incur provisions amounting to around €4 billion (approximately $4.4 billion) as early as the fourth quarter of this year. This move, outlined by VW executives and reported on September 16, 2024, reflects the company's urgent need for restructuring amid shifting market dynamics and production demands.
The primary driver for these drastic measures appears to be Volkswagen's plan to streamline operations without requiring prior approval from its supervisory board—a departure from the traditional routes of communication and approval within the company hierarchy. This newfound flexibility could help management push through necessary closures more swiftly, allowing VW to respond rapidly to the turbulent economic climate.
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