Volkswagen Group is facing significant challenges, with plans to potentially cut up to 30,000 jobs in Germany over the medium term, according to Manager-Magazin.
This comes as Chief Financial Officer Arno Antlitz aims to reduce the company's investment budget for the next five years to €160 billion, down from the previously planned €170 billion for the 2025-2029 period.
The cuts are primarily driven by rising costs within VW’s core brand, VW Passenger Cars.
Cutting ties with unions
The company has also ended its long-standing job security agreement with German unions, sparking discussions about factory closures and layoffs.
Brand head Thomas Schäfer aims to increase the company's operating return to a target of 6.5% in the coming years.
Negotiations with the union IG Metall are scheduled to begin on September 25th. Reports suggest that VW may focus job reductions in research and development, where 4,000 to 6,000 out of 13,000 positions in Germany could be affected.
CEO Oliver Blume reportedly considers this level of job cuts realistic, although his predecessor, Herbert Diess, faced backlash for proposing similar measures.
These potential layoffs are part of a broader effort to stabilize the company, but their full impact remains uncertain.
Talks with unions and further negotiations will play a key role in determining the final scope of these cost-cutting measures.
