Volkswagen on Friday announced sweeping changes to its German operations, including more than 35,000 future job cuts and sharp capacity reductions.
Shares rose 2.4% in extended trade after the deal. They have lost 23% this year.Volkswagen
The deal avoiding costly strikes may also provide relief to investors after months of negotiations. Shares rose 2.4% in extended trade after the deal. They have lost 23% this year. "With the package of measures that has been agreed, the company has set a decisive course for its future in terms of costs, capacities and structures," Volkswagen Group CEO Oliver Blume said in a statement.
The 35,000 future job cuts would represent around a quarter of VW's workforce and come in tandem with reducing the company's network of German plants by more than 700,000 vehicles.IG Metall chief negotiator Thorsten Groeger nevertheless said the cuts, which would not involve compulsory redundancies, were part of a solution to address overcapacity and would be done in a socially responsible manner.
The question of how to fix Germany's sluggish growth has taken center stage as a campaign issue ahead of a snap election in February, while Chancellor Olaf Scholz, trailing in the polls, has urged VW to keep all its factories open.
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