The German manufacturer is considering job cuts on an unprecedented scale, against a backdrop of falling sales in China and increased competition.
The Volkswagen group, giant of the automobile industry, is going through an even deeper crisis than had been foreseen until now. According to information published Friday June 26 by Manager Magazin, which cites internal sources, the German manufacturer is considering cutting up to 100,000 jobs worldwide in the coming years, or double the 50,000 cuts announced in March. Four German factories would also be threatened with closure in the medium term.
A deep crisis, unconfirmed plans
Volkswagen currently employs 657,000 people worldwide. The group is facing a fall in its sales in China, formerly its main market, while Chinese exporters impose formidable competition on third markets, including in Europe. Added to this are soaring energy costs, difficulties in making the switch to electricity, new customs duties and stagnant or even declining markets.
According to a spokesperson for the group, “the entire group – brands and companies included – must carry out an in-depth transformation. New customs duties, tougher competition and stagnant or even declining markets currently represent costs for the company of the order of several tens of billions of euros per year”. Questioned about the plan revealed by the press, this spokesperson however declared “not wishing to comment on internal and confidential documents”, specifying that “the facts on which they are based are examined and approved within the competent bodies. We will not prejudge the outcome of this process”.
These projects, led by CEO Oliver Blume as part of his “2030 vision”, remain in fact hypothetical: the group’s German sites benefit from an employment guarantee until the end of 2030, under an agreement with the IG Metall union. In a joint press release, the latter and the works council also warned that, if such plans were to be implemented, they would do “everything in our power to prevent them”. The supervisory board must consider the matter on July 9.
