The plan includes a massive workforce adjustment of approximately 50,000 positions, including management roles, which will impact the Group’s brands.

“Beyond existing programmes, a further fundamental adjustment of the global workforce capacity is necessary to achieve the objectives of the transformation programme and safeguard the competitiveness of the Volkswagen Group,” the company said in a media release.

“Given intensifying global competition, shifting demand, and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential.”

The plan also aims to deliver leaner leadership structures, clearer accountability, and shorter lines of decision-making at the German carmaker.

“A unified performance and bonus system for executives will drive accountability for individual results and collective performance,” the media release read.