Volkswagen to Cut 100,000 Jobs as Part of Restructuring
Volkswagen is launching its largest restructuring in 89 years, cutting around 50,000 jobs by the end of the decade, totaling approximately 100,000 layoffs. Reasons include competition with Chinese automakers, high energy prices, and the shift to electric vehicles. CEO Oliver Blume stated that this is a signal for the company's future. The new plan has been agreed upon with unions representing over 650,000 workers. Initial layoffs will begin at the end of 2024, affecting 37,000 workers. Volkswagen is also considering the future of four plants in Germany and the possibility of repurposing them for the defense industry. The company plans to produce about 9 million vehicles per year, which is lower than previous targets. Experts consider the situation existential for Volkswagen and the German industry, requiring radical changes to compete with Chinese manufacturers.
-- Price
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