Volkswagen board approves turnaround plan, flags 50,000 possible job cuts across group

FRANKFURT, Sept 3 (Reuters) - Volkswagen's ‌supervisory board unanimously ​approved ​on Thursday a transformation plan that could include cutting another 50,000 jobs in its attempt to counter tariffs, overcapacity and ‌Asian rivals.

The plan, the most extensive restructuring in Volkswagen's 89-year ⁠history, includes exploring alternatives for four German plants with no firm production plans ‌for the next decade.

It ‌includes a simplification of Volkswagen's conglomerate structure as well as limits to the influence of the supervisory board — on which unions and ​shareholder Lower Saxony hold a majority — on key decisions.

"This is a strong signal for the future of the Volkswagen Group. ⁠We are taking responsibility for our entire workforce, for our partners and for industrial jobs ​worldwide," CEO Oliver Blume said in a statement.

The "Future Plan," presented by Volkswagen's management board and approved at a ​supervisory board meeting, comes as Europe's largest ‌carmaker faces pressure from all sides, squeezed between U.S. import tariffs and a weak Chinese market.

Volkswagen said "a ⁠further fundamental adjustment of the global workforce capacity" was needed, saying this would include a reduction of around 50,000 positions worldwide — in addition to ⁠a 50,000-job reduction under way.

The company did not provide further details on the ​timing of the workforce reduction or how the cuts would be distributed across its brands and regions.

The deal follows weeks of tense negotiations that pitted the ‌board and majority owner Porsche SE against unions and Lower Saxony, with management considering an extraordinary general ‌meeting to push through its demands.

The company cited increasing global competitive ⁠pressure, changing demand patterns and ‌technological change in the ​automotive industry as reasons for the planned measures.

(Reporting by Mrinmay Dey and Christoph Steitz; Editing by Shailesh Kuber, ‌Rod Nickel)

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