Volkswagen to Cut 1 Lakh Jobs to “Align Workforce with Economic Realities”
Volkswagen to cut 1 lakh jobs by 2030, its largest-ever restructuring, as it battles tariffs and Chinese EV competition.
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Volkswagen said on Thursday that management and unions have agreed to cut a further 50,000 jobs by the end of the decade, bringing total planned job losses at the group to 100,000.
“It is essential to systematically align workforce levels with economic realities,” the 10-brand group, which includes Audi and Porsche, said in a statement. The board had earlier approved a plan for around 50,000 job cuts, on top of another 50,000 already agreed with unions.
The total 100,000 cuts amount to about 15 per cent of Volkswagen’s global workforce of more than 650,000, making it the largest restructuring in the history of the global automotive industry. It surpasses General Motors’ 74,000 job cuts and 21 plant closures in 1991, and its further 47,000 cuts during the 2009 financial crisis.
Management and unions also agreed that the long-term future of four German plants, in Hannover, Emden, Zwickau and Neckarsulm, cannot be guaranteed, though alternative uses for the sites are being explored. Any closures would mark the first time Volkswagen has shut full-scale factories in its home country.
“The supervisory board has unanimously approved the executive board’s future plan presented today. This is a strong signal for the future of the Volkswagen group,” said Oliver Blume, CEO, Volkswagen.
The carmaker has been hit by US tariffs, uneven demand for electric vehicles, and intensifying competition from Chinese rivals.
Volkswagen said on Thursday that management and unions have agreed to cut a further 50,000 jobs by the end of the decade, bringing total planned job losses at the group to 100,000.
“It is essential to systematically align workforce levels with economic realities,” the 10-brand group, which includes Audi and Porsche, said in a statement. The board had earlier approved a plan for around 50,000 job cuts, on top of another 50,000 already agreed with unions.
The total 100,000 cuts amount to about 15 per cent of Volkswagen’s global workforce of more than 650,000, making it the largest restructuring in the history of the global automotive industry. It surpasses General Motors’ 74,000 job cuts and 21 plant closures in 1991, and its further 47,000 cuts during the 2009 financial crisis.
Management and unions also agreed that the long-term future of four German plants, in Hannover, Emden, Zwickau and Neckarsulm, cannot be guaranteed, though alternative uses for the sites are being explored. Any closures would mark the first time Volkswagen has shut full-scale factories in its home country.
“The supervisory board has unanimously approved the executive board’s future plan presented today. This is a strong signal for the future of the Volkswagen group,” said Oliver Blume, CEO, Volkswagen.
The carmaker has been hit by US tariffs, uneven demand for electric vehicles, and intensifying competition from Chinese rivals.
