Volkswagen’s board of directors has approved a major cost-cutting strategy that includes the elimination of 50,000 additional jobs and the closure of four manufacturing plants in Germany. This new plan, combined with 50,000 previously announced job cuts, brings the total number of potential job losses to 100,000. The decision comes in response to increasing competition from lower-cost automakers in China and the impact of U.S. tariffs on the company’s operations. CEO Oliver Blume proposed the plan to help Volkswagen remain competitive in a rapidly changing automotive industry. As part of the strategy, Volkswagen plans to reduce the number of car models it produces by about half. The four affected plants—located in Emden, Zwickau, Hannover, and Neckarsulm—are expected to stop producing vehicles between 2031 and 2034. However, the company said it will explore alternative uses for these facilities, such as producing electric vehicles or other products. The board described the plan as an “adjustment of the employee numbers of around 50,000 positions,” which includes both factory workers and management roles. The plan has drawn mixed reactions from labor representatives. Daniela Cavallo, the chief employee representative, called the measures “a necessity for our company to move successfully into the next decade,” but she emphasized that the burden should not fall solely on employees. Cavallo had previously criticized the plan when it was first proposed in the summer, highlighting concerns about the impact on workers and the need for fair treatment during the transition. Volkswagen, which employs around 650,000 people worldwide, reported a 30% decline in after-tax earnings for the first half of the year. This drop was largely attributed to weaker sales in China, a key market for the company. As the automotive industry shifts toward electric vehicles and faces growing global competition, Volkswagen’s latest restructuring efforts aim to ensure long-term stability and profitability.