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Volkswagen plans up to 100,000 job cuts as costs rise
Volkswagen said group costs are 20% higher than rivals and profits fell from €22.6 billion in 2023 to €8.9 billion last year.
Volkswagen Group CEO Oliver Blume confirmed the automaker is assessing job cuts of up to 100,000 globally, double the amount the company previously indicated. The group, which includes Porsche, Audi, Seat and Skoda along with the VW brand, previously targeted about 50,000 roles eliminated in Germany by 2030.
BBC Business reports Volkswagen is facing weaker profitability tied to falling sales in key markets and rising competition from Chinese automakers expanding into Europe. In staff communications, Blume said Volkswagen’s costs are 20% higher than those of rival businesses and that the company needs to reduce outgoings further.
The report notes Volkswagen has struggled financially in recent years, with operating profit declining from €22.6 billion in 2023 to €19.1 billion in 2024, and then to €8.9 billion last year. It also pointed to continued pressure from reduced sales, with first-half 2024 China sales down 26% year over year, and US sales falling more than 7%.
Volkswagen attributed part of the US decline to the impact of tariffs on car imports introduced by the Trump administration and said Chinese brands are competing with lower production costs and new technologies. The company also said it was unable to confirm alternative uses for four German factories previously flagged for closure, including facilities in Zwickau and Emden used for electric vehicle production.