Eye! Are staff cuts coming at the Volkswagen brand?

Volkswagen cuts

Everyone knows that the main European car manufacturers are closely watching the movements of the Asian ones, specifically the Chinese ones, which are arriving like a whirlwind into our market. This, together with the transition to electric vehicles, is putting many brands in trouble. The latest information affects Volkswagen.

According to the agency Reuters, it seems that they have had access to internal conversations of the German company. Volkswagen has a savings program of no less than 10.000 million euros, including personnel reductions. Needless to say, this is never good news.

Volkswagen's objective: 10.000 million euros of cuts

Several months ago we learned about this reduction plan worth 10 billion euros for the year 2026. The latest events, such as political conflicts, the pandemic and the semiconductor crisis, have been a serious blow to the company.

Supposedly, and we refer again to Reuters, the person in charge of the brand, Thomas Schaefer, would have said in a meeting that “Due to many of our existing structures, processes and high costs, we are no longer competitive as a Volkswagen brand.".

Volkswagen cuts staff

On the other hand, Gunnar Kilian, member of the council of human resources, would have stated that part of these planned savings would be achieved through agreements on the partial or early retirement of workers.

There will not only be adjustments in personnel

In any case, most of the objective - I repeat, 10.000 billion euros - will be achieved through other measures other than staff reduction. "Finally we have to be brave and honest enough to throw overboard things that are being duplicated within the company or that are simply a burden that we do not need to obtain good results.”, Kilian would have stated.

Previously, the company had stated that it planned to take advantage of the “demographic curve” to reduce its workforce, after promise not to carry out layoffs until 2029.

We'll see how this all ends, but it's clear that The ecological transition towards electric vehicles is not going as the powerful European manufacturers had expected... In the case of Volkswagen, it has also been added that Stellantis is pushing hard to have so many brands, which allows them to take advantage of the technology and resources for many different vehicles and, therefore, reduce costs per unit.

Source - Reuters

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