In the intermediate future, Volkswagen might shed as many as 30,000 positions within Germany.
The ailing Volkswagen Group might consider shedding as many as 30,000 jobs in Germany in the near future, as suggested by a Manager-Magazin report, relying on internal sources. Additionally, the publication claims that Chief Financial Officer Arno Antlitz is contemplating a decrease in investment funds over the next five years, dropping from the initial 170 billion euros to 160 billion euros for the 2025-2029 period.
Volkswagen hasn't publicly commented on the matter. The company has been finding it tough to manage expenses in its powerful VW Pkw segment and has dissolved the decade-long work security agreement with German unions. Speculation surrounds plant shutdowns and layoffs.
CEO Thomas Schäfer aims to boost the operating margin to its target level of 6.5% in the coming years. Talks with IG Metall are scheduled for September 25.
The situation seems to be pressing so hard that substantial workforce reductions seem feasible. Manager Magazin alleges that tough-minded individuals within the corporation have proposed a 30,000-job reduction from the existing 130,000, with CEO Oliver Blume reportedly viewing this figure as plausible in the long run. His predecessor, Herbert Diess, encountered resistance when proposing similar job reduction plans and was forced to abandon them.
The Volkswagen Group is contemplating significant employment reductions, potentially shedding up to 30,000 jobs in Germany as a cost-cutting measure. Amidst financial challenges, CEO Thomas Schäfer is aiming to improve the operating margin, which highlights the pressing need for changes in the workforce.
