Up to 100,000 layoffs in the group
The plan provides for the doubling of personnel cuts, with the total number of jobs to be eliminated potentially reaching as high as 100,000. Today, the Volkswagen group, which includes Porsche and Audi among others, employs approximately 657,000 workers globally. Information indicates that the new restructuring program will be presented next month to the company's supervisory board, where, however, decisions are traditionally moderated, as employee representatives hold half of the body's seats.
Goal to save €11 billion
Beyond the layoffs, Oliver Blume's strategy provides for the reduction of general operating expenses by 11 billion euros by the end of the decade. In this context, the closure of four factories in Germany within the next few years is also being considered. According to the report, units targeted include the Audi factory in Neckarsulm, as well as Volkswagenfacilities in Hanover, Zwickau, and Emden.
Volkswagen: "Deep change is required"
A Volkswagen spokesperson avoided commenting on the specific information from Manager Magazin, but confirmed that the company is in a process of overall transformation. As they characteristically stated, Volkswagen "must undergo deep changes," noting that the executive board has been working intensively in recent months on a new strategic plan that will redefine the group's operation with a long-term horizon.
Pressures from the US, China, and Chinese competitors
Oliver Blume is attempting to reduce the size and operating costs of the group at a time when the European automotive industry is facing multiple challenges. Among the most significant factors pressuring Volkswagen are US tariffs, the prolonged weakness of the Chinese market, and the intensifying competition in Europe from companies such as BYD and Stellantis.
28,000 employees have already agreed to leave
Blume has already proceeded with significant restructuring moves. Among other things, Volkswagen sold 51% of its subsidiary Everllence, which is active in the manufacturing of marine engines, thus strengthening the group's liquidity. At the same time, approximately 28,000 employees have already agreed to leave the company, as part of the existing plan which provides for a total reduction of 50,000 jobs by 2030.
Production capacity is also being reduced
The restructuring is not limited only to human resources. Volkswagen has already proceeded with a significant reduction of its production capacity, abandoning the target of producing 12 million vehicles annually. Now, the managementconsiders 9 million vehicles per year a more realistic production level, adjusting its industrial base to the new conditions prevailing in the international car market.
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