Volkswagen Plans to Cut 100,000 Jobs — Manager Magazin
Volkswagen is planning to cut 100,000 jobs / Photo: Y Lim / Shutterstock
Volkswagen, Europe's largest automaker, which also owns the Porsche and Audi brands, plans to cut up to 100,000 jobs and possibly close plants in order to boost its competitiveness, according to Manager Magazin, citing sources.
The company currently has approximately 657,000 employees.
Volkswagen CEO Oliver Blume plans to cut total costs by €11 billion ($12.5 billion) by 2030 and close four plants in Germany in the medium term, the magazine reports. This list includes the Audi plant in Neckarsulm and VW plants in Hanover, Zwickau, and Emden.
The head of the automaker is also considering spinning off its auto parts manufacturing plants and the VW brand to streamline the company's structure, according to Manager Magazin. The Volkswagen brand has long struggled with low profitability, Bloomberg notes.
Volkswagen shares fell 0.7% during trading in Frankfurt on June 26. Since the beginning of the year, the company's market capitalization has declined by more than 25%.
What's Happening at the Company
The day before, on June 25, it was reported that VW would sell its marine engine division, Everllence, to the American investment firm Bain for €7.4 billion ($8.4 billion). This deal reflects the CEO’s desire to streamline the structure of the company’s sprawling business in order to focus on its core automotive operations, notes the Financial Times.
Volkswagen’s restructuring is taking place against a backdrop of challenges caused by U.S. tariffs, a prolonged slump in sales in China, and pressure from competitors, including China’s BYD and the multinational Stellantis. However, Bloomberg notes that previous attempts to streamline operations at Volkswagen have often faced resistance from union leaders and regional politicians, who together hold a blocking majority on the supervisory board.
About 28,000 employees have agreed to leave VW as part of a previously announced plan to cut 50,000 jobs across the group by 2030. The company also plans to reduce car production in Germany by 500,000 units.
This article was AI-translated and verified by a human editor
