Volkswagen Plans Largest Job Cuts in Automotive Industry History
Business
Volkswagen plans to cut around 100,000 jobs worldwide by the end of the decade, equivalent to roughly 15% of its global workforce. Management and unions have agreed to eliminate another 50,000 positions, on top of the same number already agreed earlier.
The group, which brings together ten brands, said it was “extremely important to consistently align the workforce with economic realities.” The decision is part of a major restructuring programme approved by both the supervisory board and trade unions.
Volkswagen CEO Oliver Blume said the supervisory board had unanimously approved the development programme presented by the company. He described the decision as “a powerful signal for the future of the Volkswagen Group.”
The scale of the cuts exceeds previous records in the automotive industry. The previous record was held by General Motors, which eliminated 74,000 jobs and closed 21 plants in 1991 as it lost ground to Japanese competitors. In 2009, the company cut another 47,000 jobs worldwide as part of a financial restructuring.
Volkswagen’s restructuring plan also leaves open the possibility of closing four major plants in Germany after 2030. The group had previously avoided such far-reaching measures at its domestic facilities.
Several factors have weighed heavily on Volkswagen, including Donald Trump’s tariffs, unstable demand for electric vehicles and, above all, intense competition from Chinese carmakers.
Alongside the Volkswagen brand itself, the group’s portfolio includes mass-market brands Škoda, SEAT and Cupra; premium and luxury brands Audi, Bentley and Lamborghini; motorcycle manufacturer Ducati; and sports-car brand Porsche.
Volkswagen CEO Oliver Blume said the supervisory board had unanimously approved the development programme presented by the company. He described the decision as “a powerful signal for the future of the Volkswagen Group.”
The scale of the cuts exceeds previous records in the automotive industry. The previous record was held by General Motors, which eliminated 74,000 jobs and closed 21 plants in 1991 as it lost ground to Japanese competitors. In 2009, the company cut another 47,000 jobs worldwide as part of a financial restructuring.
Volkswagen’s restructuring plan also leaves open the possibility of closing four major plants in Germany after 2030. The group had previously avoided such far-reaching measures at its domestic facilities.
Several factors have weighed heavily on Volkswagen, including Donald Trump’s tariffs, unstable demand for electric vehicles and, above all, intense competition from Chinese carmakers.
Alongside the Volkswagen brand itself, the group’s portfolio includes mass-market brands Škoda, SEAT and Cupra; premium and luxury brands Audi, Bentley and Lamborghini; motorcycle manufacturer Ducati; and sports-car brand Porsche.
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