Mumbai — Volkswagen plans to eliminate at least 100,000 jobs by the end of the decade as part of a sweeping cost-cutting and restructuring effort aimed at making the German automaker more competitive.
The company said it plans to cut about 50,000 additional positions on top of nearly 50,000 job reductions already agreed upon, bringing the total to roughly 15% of its global workforce.
Volkswagen is also planning a major reduction in the number of vehicle models it produces across its brands, which include Audi, Bentley, Porsche, Skoda, Seat, Cupra and Lamborghini.
The company is considering closing four production plants in Germany over the next eight years as it adjusts capacity to changing market conditions.
“Given intensifying global competition, shifting demand and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential,” Volkswagen Group said.
Volkswagen employs more than 650,000 people worldwide.
The group plans to reduce its model portfolio by about 50% and cut the complexity of its offerings by roughly 75% by 2035.
“The prioritised models aim to excel in design and technology – and benefit from the focus on fewer variants: Higher volumes per model, lower costs, stronger economies of scale,” the company said.
Volkswagen also plans to tailor its vehicle platforms, electronic architectures, driver-assistance systems and software more closely to different regional markets.
In North America, the company said it will concentrate on its most profitable vehicle segments. In China, Volkswagen is adjusting to slower expectations for overall market growth while expanding exports to markets in the Global South.
The automaker also plans to review its portfolio of investments and businesses, with the goal of reducing it by about one-third and retaining only operations that make a clear strategic or financial contribution to its core business.
“Non-strategic activities will be divested or realigned. The real estate portfolio will also be reviewed. The goal is to have a leaner structure and more effective use of capital,” Volkswagen said. (Source: IANS)
