Volkswagen weighs up to 100,000 job cuts, four plant closures in overhaul: Reuters
The plan would cut about 15% of VW’s workforce and reduce investment as the automaker faces tariffs, Chinese competition and EV transition costs.
- On Friday, Manager Magazin reported that Volkswagen Group CEO Oliver Blume aims to cut up to 100,000 jobs worldwide and discontinue production at four German plants, representing the most radical overhaul in the firm's 89-year history.
- Volkswagen faces intense pressure from tariffs, Chinese competition, and the costly shift to electric vehicles, with the company's stock price falling more than 25% year-to-date.
- Production will end at facilities in Hanover, Zwickau, Emden, and Audi's Neckarsulm site, while investment reduces by around 15% to just over €130 billion over five years.
- Volkswagen's General Works Council and German industrial union IG Metall pledged to oppose the cuts, citing a 2024 deal guaranteeing no factory closures and ruling out compulsory redundancies until 2030.
- A Volkswagen spokesperson declined to comment on "internal, confidential documents," stating that "the relevant facts of the matter will be discussed and approved by the relevant bodies." The firm accelerates cost-cutting beyond 50,000 job cuts already underway.
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As a shareholder of the Volkswagen Group, the Land of Lower Saxony rejects any savings plans for the company. Prime Minister Lies stated that the country would not agree to any development that would set a supposedly simple solution to factory closures or call into question the proven co-determination.
Volkswagen plans up to 100,000 job cuts: ‘Never has the risk situation been so high’
Volkswagen plans to slash up to 100,000 jobs and halt production at four German plants in a sweeping cost-cutting drive that could rank among the largest corporate layoffs in history.
Volkswagen AG seeks to cut tens of thousands of additional jobs and could close factories, as part of an initiative by the executive director, Oliver Blume, to make Europe’s largest car manufacturer more competitive, Manager Magazin reported. Plans, presented by the executive director during a board meeting earlier this week, include doubling the workforce reduction figure to 100,000 employees. Porsche and Audi’s own group currently employs abou…
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