Earthquake at Volkswagen: The largest European manufacturer eliminates 19,000 jobs in record time
The German automaker will reduce its workforce at domestic plants by the end of the year amid Chinese competition and high energy costs.
Volkswagen will cut its German workforce by 19,000 by the end of the year, continuing a plan to cut more than 28,000 jobs by 2030, according to a speech by CEO Oliver Blume seen by Reuters.
The measures are part of Volkswagen's strategy to become more efficient and adapt to obstacles in the European auto industry, marked by aggressive competition from Chinese manufacturers, declining interest in electric cars and high production costs.
Some of these efficiency measures have already been implemented in record time for German plants. “We have reduced the costs of the Volkswagen factories in Germany by more than 20% by 2025,” Blume states in his speech.
The auto giant is aiming to improve profitability in the domestic market, where labor and energy costs are considerably higher than in other regions. This staff reduction is one of the main components of the restructuring program agreed with the employee representatives.
Although Volkswagen did not provide further details on the implementation of the new job cuts, the automaker has previously indicated that it will rely mainly on early retirements, voluntary departures and efficiency measures, thus avoiding forced redundancies.
The German group is trying to strengthen its competitiveness at a time when the European car market is going through one of the most difficult periods in recent years. In this context, traditional manufacturers are forced to invest heavily in electrification and digital technologies, while trying to reduce expenses.
