The German automobile concern “Volkswagen” announced on Wednesday that it will reduce the number of employees in the coming years, thus trying to increase profitability and ensure greater momentum for the transition to the production of electric cars.
“In the coming years, we will have to reduce the number of employees in a socially responsible way,” explains the company.
“Volkswagen” states that it will try to make maximum use of partial and early retirement options, but currently does not specify how many jobs will be eliminated.
However, the company said that the goal is to reduce labor costs in non-production areas by about 20%. However, the automaker emphasizes that this does not mean that the number of employees will be reduced by 20%, as most of the cost savings will be provided by process improvement and structural adjustments.
“Volkswagen” currently employs approximately 675,800 people worldwide.
In June, the concern announced a cost reduction program of ten billion euros in an effort to improve profitability. Volkswagen is investing tens of billions of euros in electric car production, but the sector has been hampered by a weak global economy and low demand.
In addition, like other manufacturers in Europe’s largest economy, Volkswagen’s operations have also been negatively affected by rising costs fueled by high inflation and energy prices since the start of the full-scale war in Ukraine.
Among the Volkswagen brands are not only Volkswagen, but also Audi, Bentley, Bugatti, Cupra, Ducati, Lamborghini, Porsche, SEAT and Skoda.
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2023-12-07 08:16:10
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