Volkswagen to cut another 50,000 jobs; total layoffs to reach 100,000 by 2030!
German automotive giant Volkswagen is set to carry out its largest-ever round of layoffs. The company has announced plans to cut an additional 50,000 jobs. This is reported to be the biggest workforce reduction in the company’s 90-year history. Having previously announced a reduction of 50,000 jobs in March, the company has now revealed plans to cut another 50,000 positions. This brings the total number of job cuts to 100,000 by 2030. Let us look at the major reasons behind this move.
Volkswagen is undertaking the largest workforce reduction in its history. The company’s supervisory board has approved a new plan to reduce the number of employees. Volkswagen had already announced in March that it would cut 50,000 jobs by 2030; however, the board has now approved plans to cut an additional 50,000 positions. Consequently, the total number of jobs eliminated by the automaker by 2030 is set to reach 100,000.
According to a BBC report, Volkswagen CEO Oliver Blume stated on Thursday that this move sends a “strong signal” regarding the company’s future and demonstrates that the company is “taking responsibility for all its employees.” The group includes brands such as Audi, Porsche, Skoda, and VW. The group is also deliberating on the future of its four German plants.
Blume had previously mentioned in July that the company was considering further cuts. The announcement of the layoffs impacted the company’s stock; shares rose by approximately 7% in Frankfurt on Friday morning. The layoffs are part of a restructuring process, as the company undergoes structural changes. This restructuring comes at a time when Volkswagen is facing a decline in both sales and profits. The company is facing stiff competition in the market, particularly from Chinese electric vehicle manufacturers. It has taken this step in an effort to regain profitability and expand capacity amidst this competitive landscape. The company also announced plans to cut its model lineup by 50% and reduce product complexity by 75% by 2035.
