Volkswagen to eliminate 100,000 jobs by 2030 as part of major restructuring
Volkswagen announced plans to cut 100,000 jobs, about 15% of its global workforce, and restructure its operations while investing in research and development.
German automaker Volkswagen said on Thursday it will reduce its workforce by 100,000 jobs by the end of the decade, the largest downsizing in the global car industry. The plan, approved by management and trade unions, adds 50,000 new redundancies to 50,000 cuts already agreed.
The cuts represent roughly 15% of Volkswagen’s worldwide staff and exceed the 50,000 job reductions General Motors made after its 2009 bankruptcy. Volkswagen also warned that the long-term future of four German plants – in Hannover, Emden, Zwickau and Neckarsulm – is uncertain, marking the first potential full-scale closures of factories in its home country.
"It is essential to systematically align workforce levels with economic realities," the Volkswagen group statement read.
CEO Oliver Blume said the reduction sends "a strong signal for the future of the Volkswagen Group." The company did not disclose how the cuts will be allocated across regions, but indicated a strategic focus on North America and an aim to increase exports to emerging markets.
Volkswagen plans to invest several hundred billion euros in research and development over the coming years and to streamline its corporate structure, reducing the number of subsidiaries by about one-third to accelerate decision-making.