Volkswagen planning to cut up to 100,000 jobs globally
Volkswagen is planning to cut up to 100,000 jobs globally as it struggles with declining profits and increased competition from Chinese manufacturers. The company is facing high operational costs and a significant drop in sales across key markets including China and the US.
Why it matters
This massive workforce reduction highlights the severe challenges legacy automakers face in transitioning to electric vehicles while competing with lower-cost international rivals.
Image source, Getty Images By Theo Leggett International Business Correspondent Published 11 minutes ago The chief executive of the German car giant Volkswagen Group has confirmed it is looking to cut up to 100,000 jobs – twice as many as previously stated.
The group, which includes Porsche, Audi, Seat and Skoda as well as the VW brand, had previously said it would axe some 50,000 posts in Germany by 2030.
It suffered a steep decline in profits last year – the result of falling sales in key markets, as well as increasing competition from Chinese brands moving into Europe.
In a widely-reported memo to staff, chief executive Oliver Blume said the Group's costs were 20% higher compared to rival businesses, and it would need to reduce its outgoings even further.
This, he said would mean a "theoretical deduction" of 50,000 jobs worldwide.
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