Automotive giant to cut 50,000 jobs

The expansion of the cost-cutting program initiated at Volkswagen in 2024 has come to the agenda. The company's CEO, Oliver Blume, stated that the global workforce is above sustainable levels under current conditions and that approximately 50,000 more positions need to be eliminated.

According to an internal document obtained by Bloomberg, this step is large enough to double the company's current layoff target. It is reported that the plan has not yet received approval from the board of directors at Volkswagen, which has more than 657,000 employees worldwide, and that unions are strongly opposing the process.

While discussions continue regarding the potential closure of some factories in Germany, Blume said the company's priority is to develop more efficient solutions rather than closing factories. The CEO also emphasized that the current model based on manufacturing in Germany and exporting these products to the world is no longer sustainable in the same way.

It is stated that the pressure on Volkswagen is concentrated in several areas. Weakening demand in China, US import tariffs, stagnation in the European market, and high production costs are among the factors challenging the company's profitability.

The automotive giant is also reviewing its subsidiaries to reduce costs and strengthen its cash position. Last month, the company generated significant resources by selling a majority stake in its marine engine unit, Everllence, for 7.4 billion euros.

It was reported that Volkswagen plans to re-evaluate assets in its portfolio, including Ducati and QuantumScape, in terms of their contributions to its core automotive operations. Negotiations with unions are expected to be decisive in the company's final decisions.

News Source: 12punto