Volkswagen's crisis has now deepened to the point where the car giant is preparing for one of the largest rounds of layoffs in European automotive history.
According to German publication Manager Magazin, the company is planning to lay off up to 30,000 employees in Germany. It's not just factory workers who can expect pink slips. As of 2023, the most recent count, Volkswagen employed just under 300,000 people in Germany. The company has not wished to comment on the latest information.
According to the German media outlet, the cuts will primarily affect R&D - research and development work - where Volkswagen now needs to save money. The publication believes that up to 6,000 employees in VW's development department will be let go.
Currently, 14,000 people work on developing future cars at Volkswagen. The company has recently invested in both Chinese Xpeng and American Rivian to accelerate the development of electric vehicles in particular.
However, due to very poor financial performance, this development may not progress as quickly as the Germans in Wolfsburg had envisioned. As a result of Volkswagen's poor economic situation, German politicians are beginning to take notice. Most recently, Germany's Finance Minister Christian Lindner has declared his willingness to postpone upcoming emission requirements for car manufacturers.
Under current regulations, car brands could face billion-dollar fines as early as January 1, 2025, if they cannot stay below a stricter average CO2 emission limit.
