Key facts
- Volkswagen will reduce its German workforce by 19,000 by the end of the year.
- Over 28,000 job cuts are a binding target for 2030.
- Factory costs at German sites are targeted for a reduction of over 20% by 2025.
- The company has announced plans to cut 35,000 jobs in Germany over five years.
- Additional cuts include 1,900 positions at Porsche and 7,500 at Audi.
Volkswagen is proceeding with significant job cuts and cost reductions in Germany, with CEO Oliver Blume set to announce a reduction of 19,000 employees by the end of the year to investors at the upcoming Annual General Meeting. This move is part of a broader strategy to streamline operations and improve competitiveness.
According to a transcript of Blume's speech for the June 18 event, more than 28,000 job cuts have been agreed upon as a binding target for 2030. Blume also stated that factory costs at Volkswagen's German sites are targeted to be reduced by over 20% by 2025.
Recent announcements indicate plans to reduce the German workforce by 35,000 over five years, alongside culling 1,900 positions at Porsche and 7,500 at Audi. The company's software business is also slated for a reduction of approximately one-third. Volkswagen concluded the previous year with 679,472 employees globally, including 293,338 in Germany.
CEO Oliver Blume has been working to make the company more agile, brokering an agreement with the works council that is expected to generate around €4 billion ($4.3 billion) in annual savings. However, the company has faced challenges in implementing more drastic measures, such as plant closures, due to the influence of worker representatives on the supervisory board and the state of Lower Saxony's significant stake.