‘Much better than feared outcome’: Volkswagen shares jump 6% after revealing plan to reduce workforce by 50,000—and phasing out four factories

Volkswagen shares rose 6% on Friday after its board of directors approved sweeping cost cuts aimed at confronting challenges including ferocious Chinese competition and US tariffs.

Investors were cheered by CEO Oliver Blume’s success Thursday in pushing the streamlining effort through the board, where employees are strongly represented.

The plan envisions reducing Volkswagen’s work force by 50,000, phasing out four factories in Germany to eliminate expensive excess production capacity, and slimming the company’s roughly 150 different models to half that.

Perhaps the biggest challenge the company is facing is China, formerly a major source of profits. The overall Chinese market has........

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