Volkswagen's board of directors approved a sweeping cost-cutting plan on Thursday that calls for the elimination of 50,000 jobs, a halving of the company's model lineup, and the end of auto production at four plants in Germany.

The measures were put forward by Chief Executive Oliver Blume. They seek to counter low-cost competition in China and headwinds from the United States.

The job reductions represent a significant portion of the company's workforce. The model line slimming targets inefficiencies in a crowded market. Production cuts at the four German facilities will reshape the company's European manufacturing footprint.

Blume's proposal reflects the pressures facing traditional automakers. Global competition has intensified, particularly from lower-cost producers abroad. Domestic operations face additional challenges that the plan aims to mitigate through structural changes.

Implementation details, including timelines and affected locations, remain to be finalized following the board's decision. The moves underscore efforts to restore competitiveness in a rapidly evolving industry.