Volkswagen Plans to Cut 50,000 Jobs Worldwide
Volkswagen plans to cut 50,000 jobs worldwide as part of a major restructuring aimed at reducing costs and strengthening the company’s competitiveness. However, plans to close four plants in Germany have not yet been finalized.
Of the planned job cuts, around 35,000 will come from Volkswagen’s core brand, while the remainder will affect subsidiaries including Audi and Porsche. The figure includes positions at management level.
Volkswagen, one of Germany’s and Europe’s largest automotive manufacturers, is restructuring its operations as it seeks to reduce costs and improve its competitive position.
The plan aims to reduce costs by:
🎈 Cutting 50,000 jobs worldwide
🎈 Reducing the number of vehicle models
🎈 Streamlining investments and the group’s subsidiary portfolio
🎈 Increasing the company’s profit margin to 9%
Volkswagen CEO Oliver Blume described the approval of the plan as a “very strong signal for the company’s future.”
The Volkswagen Group employs approximately 650,000 people worldwide. The planned job cuts would therefore affect roughly 8% of its global workforce.
The Volkswagen Group also aims to reduce its annual production to 9 million vehicles, approximately 1 million fewer than its current production level.
Source: Reuters, dpa / DA, JD
