restructuring

Sept. 3 (UPI) — Volkswagen said Thursday it would cut 50,000 more jobs as the German auto giant faces surging competition from China, high energy prices, and an expensive transition to electric vehicles.

“This is a strong signal for the future of the Volkswagen Group,” Chief Executive Oliver Blume said in a statement after a meeting of the company’s supervisory board. Volkswagen had been at loggerheads with unions that represent its workers, which are more 650,000 around the world.

However, union leaders on Thursday backed the plan.

“In this crisis situation, we fought hard for good solutions,” Christiane Benner, president of the union IG Metall, said in Volkswagen’s statement. “The executive board now has the foundation to tackle the major tasks ahead.”

The latest job cuts are on top of the 2024 deal Volkswagen made with union leaders to cut more than 35,000 jobs at its German plans by 2030.

The company said its factories in Europe have the capacity to produce 500,000 more vehicles than current demand. The future for production at its Emden, Zwickhau, Hanover, and Neckarasulm factories in Germany will be uncertain from 2031 to 2034. It said it is contemplating other uses for the facilities.

The company called the 12-part “Future Plan 2030” restructuring plan the “most extensive transportation program” in its history.

Volkswagen said a “fundamental adjustment” of its worldwide workforce, including management, was needed beyond current cost-cutting efforts.

No further details about where the cuts would be made, when they would happen, or if they would be achieved through layoffs, buyouts or attribution were disclosed.

Volkswagen also plans to cut its model portfolio in half by 2025 as well as the complexity of its offerings by around 75%. It is aiming to sell about 9 million vehicles per year and achieve a 9% operating margin by 2030.

July 31 (UPI) — British oil giant BP announced plans Friday to sell off its North Sea business, ending six decades of exploration and extraction in the U.K. Continental Shelf since the company first struck gas there in 1964.

The firm said that nothing would change for the time being while a buyer was found, vowing in a news release that it was fully committed to continuing to run its operations, prioritizing safety and dependability, while delivering for its customers, partners and investors.

The outcome of a review of its portfolio, BP said the goal was to enhance the value of the company by making it simpler and stronger through adhering to its approach of allocating capital in a rigorous fashion.

“The North Sea remains integral to the U.K.’s energy system. However, as we focus our portfolio and direct capital to our highest-value opportunities, we believe our North Sea business will be better positioned as part of another company. It has world-class people, resilient assets and a proud heritage, and it is precisely these qualities that can attract an owner ready to back its next chapter,” said BP.

“We are seeking an outcome that recognizes that value.”

CEO Meg O’Neill stressed that Britain would remain of key importance to the company going forward, saying BP was proud of the employment it generated, its input to the economy and its role in keeping energy flowing every day.

As recently as May, O’Neill described the North Sea basin as one of “untapped potential.”

The share price gained slightly on the news, rising a little more than 1% to $7.36 in mid afternoon trade on the London Stock Exchange on Friday.

BP has 24 fields across five main nodes in the North Sea, including its key Clair Ridge and Schielhallion fields of the Shetland Islands, with 1,100 workers pumping a little under 100,000 barrels of gas and oil daily.

Energy consultant Rystad, which estimates the North Sea business was worth $2.6 billion, told the Financial Times that it believed that the TotalEnergies-HitecVision-Repsol joint venture Neo Next +, Delek Group of Israel or Eni of Italy were in the running to buy it.

BuzzFeed is cutting roughly 35% of its workforce in its first major restructuring since media mogul Byron Allen bought a majority stake in the firm two months ago.

The layoffs, outlined in a Securities and Exchange Commission filing on Monday, will affect about 180 staff and contract positions across BuzzFeed and its sister brands HuffPost and Tasty.

“We’ve been actively managing costs for some time, working through scenarios to save as many jobs as possible,” BuzzFeed’s leadership team said in the memo. “Unfortunately, the elimination of certain roles is still required.”

The company, which maintains a Hollywood office, said the changes are necessary to “put our business on a path to profitable and sustainable growth.”

This restructuring comes after the millennial-focused media company, best known for quirky video content and online quizzes, sold a majority stake to Allen in May in exchange for $20 million in cash and a $100 million promissory note. Allen also became chairman and chief executive of the company.

Through the restructuring, BuzzFeed’s leaders said, the company will aim to grow its audience and bolster its positon in free streaming content.

The BuzzFeed purchase is the latest in a series of business moves Allen has made in recent years to build his entertainment empire. The former stand-up comedian recently purchased a portion of CBS’s late-night block earlier this year, taking over the time slot for the 2026-2027 season. The slot once belonged to “The Late Show with Stephen Colbert,” which was canceled last year and aired its final episode in May.

Allen’s company holds a slate of network-affiliate stations and owns the Weather Channel network. The company bought a 10.7% stake in cable channel Starz for $25 million in March.

Allen could not be reached for a comment on the new layoffs at BuzzFeed.

In its own statement, BuzzFeed said “We are extremely fortunate that Byron has enormous confidence in our management team and moved very quickly to reposition this company and unlock its value.”

BuzzFeed was founded in 2006. The website became known as a pop culture hub, where readers could indulge in the latest celebrity gossip or discover a unique cooking recipe. But over the years, the company has declined and faced mounting financial struggles. BuzzFeed reported a $15-million net loss in the first quarter of the year. The company generated $31.6 million in revenue, a 12.4% decline compared to the year-ago period. Ad revenue fell nearly 20% year-over-year to $17.1 million. However, content revenue grew roughly 69% to $7.5 million. The company is expected to release its second-quarter results Aug. 4.

Times Staff Writers Meg James and Stacy Perman contributed to this report.

June 27 (UPI) — Volkswagen is set to cut as many as 100,000 jobs, and end production at four of its plants, as part of a restructuring to better counter Chinese rivals in Europe.

The company is one of several German automakers that is making cuts as Chinese companies gain ground in both Germany and the rest of Europe, The Financial Times and Wall Street Journal reported.

BMW and Mercedes-Benz, as well as Stellantis and Renault, have lost market share in Europe as BYD, Chery and other Chinese brands have surpassed 10% of car sales on the continent after years of slow growth.

Volkswagen already had agreed with its employee’s unions to cut 50,000 jobs in Germany by the end of 2030 as part of making it “more efficient and leaner,” but some experts have questioned whether the increased moves will have their intended effect, the reports said.

“Every European player is losing today,” Thomas Besson, an auto market analyst at Kepler Cheuvreux, told The Times.

“This is a highly challenging situation for European carmakers,” Besson said, “because Chinese [manufacturers] are progressing [in Europe] at a much faster pace than expected, while [European manufacturers] continue to lose volumes in China and face very adverse conditions in the United States, notably due to tariffs.”

Volkswagen, which is Europe’s largest carmaker, would be dropping about 15% of its 660,000-person workforce, in addition to ending production at three Volkswagen plants and one Audi plant, CNBC reported.

The company also plans to reduce investments by about 15% — roughly $148 billion — over the next five years, while also launching new efforts at selling its products to compete with the Chinese companies.

“The entire [Volkswagen] group — including its brands and subsidiaries — must undergo profound change,” a company spokesperson told CNBC.

June 15 (Asia Today) — South Korean broadcaster JTBC and four other companies affiliated with JoongAng Group filed for court-led rehabilitation Monday, two days after the television network defaulted on 20.6 billion won, or about $13.6 million, in debt.

The applications could lead to restructuring, asset sales and efforts to attract new investment if the court approves the rehabilitation proceedings.

The five applicants are JTBC, Contentree JoongAng, Megabox JoongAng, JoongAng Holdings and JoongAng P&I.

JoongAng Group Vice Chairman Hong Jeong-do apologized during a news conference at the JoongAng Ilbo building in western Seoul.

“As a senior executive of JoongAng Group, I sincerely apologize to our employees,” Hong said.

“Management has explored every possible option to overcome the credit crunch and liquidity crisis and maintain the group’s operational stability,” he said. “However, accumulated financial burdens and the prolonged contraction of the capital market have left us with no choice but to file for rehabilitation proceedings.”

JTBC declared a payment default Friday after failing to repay 20.6 billion won in securitized borrowings at maturity.

South Korean credit-rating agencies subsequently downgraded the credit ratings of JTBC and other major group companies.

NICE Investors Service cut JTBC’s unsecured bond rating from BBB with a negative outlook to CCC. A CCC rating indicates a substantial risk of default and generally makes it difficult for a company to raise funds through conventional financial markets.

The agency also downgraded JoongAng Ilbo’s long-term credit rating from BBB with a negative outlook to BB- and lowered its short-term rating from A3 to B-.

Korea Ratings lowered JTBC’s unsecured bond rating from BBB with a negative outlook to BB under negative review. It also downgraded the broadcaster’s commercial paper and electronic short-term bond ratings from A3 to B under negative review.

The group’s financial difficulties have been attributed partly to a sharp decline in television advertising as audiences and advertisers move toward digital platforms and streaming services.

Heavy investment in sports broadcasting rights has also placed pressure on the group’s finances.

JTBC acquired exclusive South Korean broadcasting rights for the FIFA World Cup through Phoenix Sports, an affiliate of JoongAng Group.

Contentree JoongAng, the parent company of Phoenix Sports, reportedly invested $125 million, or about 190 billion won, to secure World Cup rights.

The group also reportedly committed about $500 million for rights to broadcast the Olympic Games from 2026 through 2032 and FIFA World Cup tournaments through 2030.

JTBC failed in February to resell Winter Olympics broadcasting rights to South Korea’s three terrestrial television networks, contributing to substantial losses.

For the 2026 World Cup, JTBC sold some broadcasting rights to public broadcaster KBS for 14 billion won, or about $9.2 million, but did not reach agreements with MBC or SBS.

If the court approves the applications, the companies are expected to consider workforce and business restructuring, asset sales and outside investment as part of a financial recovery plan.

The Seoul Bankruptcy Court assigned the cases involving the JoongAng Group companies and subsidiaries to its Rehabilitation Division 2.

The court will review financial records and other documents submitted by the companies before deciding whether to formally begin the proceedings. Such decisions are generally made within about a month.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260616010005214