Volkswagen continues one of the most extensive cost-cutting programs in its modern history. The concern's management confirmed that by 2030, more than 28,000 jobs will be eliminated in the main Volkswagen brand, and by the end of 2026, about 19,000 employees are expected to leave the company.
This is not a one-time layoff, but a long-term business transformation. Volkswagen is trying to adapt to new market conditions, where competition from Chinese manufacturers is growing, and the transition to electric vehicles requires huge investments with lower production margins.
CEO Oliver Blume stated that the program is already yielding results. According to him, production costs at the brand's German plants have been reduced by more than 20%. At the same time, the company is reducing excess capacity and focusing not on production volumes, but on business profitability.
The changes affect not only personnel. Volkswagen also plans to reduce global production capacity by approximately one million cars per year. While the concern previously aimed to produce more than 12 million cars annually, it now considers a level of about 9 million cars to be realistic.
For the European automotive industry, this is a significant moment. Just a few years ago, Volkswagen was considered a symbol of Germany's industrial stability. Now, the continent's largest automaker is forced to restructure its business model to new market realities, where Chinese brands, software, and vehicle electrification play an increasingly important role.
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