Volkswagen Approved Plan to Cut 50,000 More Jobs

The Germany-based automotive giant Volkswagen has approved a plan to cut 50,000 more job positions as part of a comprehensive transformation program. This new decision stands out as part of the company's goal to cut a total of 100,000 jobs by 2030. Volkswagen encompasses brands such as Audi, Porsche, and Skoda, and had previously announced that 50,000 job positions would be eliminated by the end of this target.

Volkswagen CEO Oliver Blume stated that this move is a "strong signal" for the company's future, expressing that they take responsibility for the entire workforce. The company has faced a decline in profits due to rising costs and intense competition from Chinese brands. Blume had previously indicated that further job cuts were necessary. The company plans to increase production of its most popular vehicles and reduce costs.

Volkswagen emphasized that this major restructuring of the global workforce is essential to maintain the company's competitiveness. Additionally, the future of the Emden, Zwickau, Hanover, and Neckarsulm facilities is also being evaluated. The company reported that the production capacity of these facilities exceeds demand and is exploring alternative uses.

This restructuring is recorded as the largest change in Volkswagen's 90-year history. By 2025, the company employed more than 660,000 people worldwide. Christianne Benner, president of Europe's largest industrial union IG Metall, stated that the automotive giant is making significant efforts to find "good solutions" to manage this crisis situation. In recent years, particularly the decline in sales in China has significantly affected Volkswagen's profits. On the other hand, companies like BYD have witnessed aggressive growth of Chinese car manufacturers by increasing their sales in markets such as the European Union and Southeast Asia.

Source: BBC Business