German automaker Volkswagen has announced plans to cut as many as 100,000 jobs as part of a major restructuring programme aimed at improving profitability.

The company is responding to declining sales in China, rising production costs and increased competition in the global electric vehicle market.

Volkswagen said the restructuring will focus on improving efficiency, simplifying operations and accelerating its transition toward electric vehicles.

Company executives believe the measures are necessary to maintain long-term competitiveness in a rapidly changing automotive industry.

The announcement comes as several European car manufacturers face pressure from lower-cost competitors and weaker consumer demand in key markets.

Analysts say the industry is undergoing one of its biggest transformations in decades.

Labour unions have expressed concern over the proposed workforce reductions and are expected to negotiate with management in the coming weeks.

Volkswagen said it would work closely with employee representatives throughout the restructuring process.

Industry experts believe the company’s strategy will determine how successfully it competes in the expanding electric vehicle market over the next decade.

Source: The Guardian