"In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany. The 10-brand group had already struck a deal with unions at the end of 2024 to cut 35,000 jobs by 2030, mostly at its namesake brand, as part of plans to save €15 billion a year."
"Even before US President Donald Trump slapped tariffs on non-American carmakers last year, Europe's largest automobile manufacturer was facing a triple whammy of stagnant demand in Europe, the costs of investing in electric cars despite patchy demand as well as cratering sales in China."
"Earnings after tax fell about 44 percent last year, Volkswagen said, with US tariffs, fierce competition in China and a costly revamp of its sportscar-maker Porsche all hitting performance. At €6.9 billion ($8 billion), earnings were at their lowest since 2016."
Volkswagen announced plans to eliminate 50,000 jobs in Germany by 2030, expanding beyond a previous agreement to cut 35,000 positions. The additional reductions will affect premium brands Audi and Porsche, plus software subsidiary Cariad. This decision follows a significant profit decline, with earnings falling 44 percent to €6.9 billion, the lowest since 2016. The company faces multiple challenges including stagnant European demand, substantial electric vehicle investment expenses, declining Chinese market share to competitors like BYD and Geely, and impacts from US tariffs. These cuts support Volkswagen's goal to save €15 billion annually.
Read at The Local Germany
Unable to calculate read time
Collection
[
|
...
]