The chief executive of the German car giant Volkswagen Group has confirmed it is looking to cut up to 100,000 jobs \u2013 twice as many as previously stated.<\/p>\n
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.<\/p>\n
It suffered a steep decline in profits last year \u2013 the result of falling sales in key markets, as well as increasing competition from Chinese brands moving into Europe.<\/p>\n
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.<\/p>\n
This, he said would mean a theoretical loss of 50,000 jobs worldwide.<\/p>\n
“We are currently assessing across all brands, companies and regions how many adjustments are actually necessary and feasible,” he said.<\/p>\n
“We need to become more efficient, more robust and simpler. We must reduce our costs.”<\/p>\n
He added the company had been “unable to confirm” alternative uses for four factories in Germany which have previously been threatened with closure.<\/p>\n
Two of the plants, in Zwickau and Emden, are used for electric car production. But along with other factories in Hanover and Neckarsulm, they are seen as expensive to run.<\/p>\n
VW’s profits have fallen sharply in recent years. In 2023, it made an operating profit of \u20ac22.6bn ($25.8bn, \u00a319.3bn). This dropped to \u20ac19.1bn in 2024, and then to just \u20ac8.9bn last year.<\/p>\n
The group has been badly hit by a fall in sales in China, once one of its most lucrative markets. In the first six months of the year they were down 26% compared to last year.<\/p>\n
In the US, sales fell more than 7%, in part due to the impact of tariffs on car imports introduced by the Trump administration.<\/p>\n
Meanwhile Chinese brands have been moving aggressively onto international markets, introducing new technologies while benefitting from lower production costs than European rivals.<\/p>\n
This has added to the pressure on established brands to keep their own costs under control, and slashed profit margins.<\/p>\n
In late 2024, after threats of mass strikes, VW reached an agreement with the German trade union IG Metall to cut 35,000 jobs at its namesake brand by 2030, in a “socially responsible manner”, with another 15,000 jobs to go at its other brands.<\/p>\n
The plans now under discussion appear to go much further.<\/p>\n
Last week saw widespread protests at Volkswagen sites across the country, ahead of a meeting of VW’s supervisory board, which includes labour representatives as well as company managers.<\/p>\n
Some industry analysts suggested to Agence France Presse that Volkswagen had deliberately publicised the number of 100,000 as a negotiating tactic, and that the final figure of cuts is likely to be lower.<\/p>\n","protected":false},"excerpt":{"rendered":"The chief executive of the German car giant Volkswagen Group has confirmed it is looking to cut up…\n","protected":false},"author":2,"featured_media":689763,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[49,50,51,47,52,48],"class_list":["post-689762","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/689762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=689762"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/689762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/689763"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=689762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=689762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=689762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}