- Reports indicate Volkswagen may cut up to 30,000 jobs amid financial pressures.
- VW denied that number, but declined to say how many employees might be let go.
- Some of the deepest cuts could be made to the research and development departments.
Volkswagen has been laying the groundwork for job cuts in Europe, but the numbers are truly staggering as a new report suggests as many as 30,000 employees could be let go. That’s a huge number, but the company’s 2023 annual report revealed they employ 298,687 people in Germany alone.
The automaker disputed the 30,000 figure, but a spokesperson told the DPA “One thing is clear: Volkswagen has to reduce its costs at its German locations.” She declined to say how many jobs were on the line, but noted there will be discussions in the future.
More: VW Warns Of Possible Plant Closures In Germany
While Volkswagen is staying tight-lipped on specifics, Manager Magazin suggested research and development could take a massive hit. If their numbers pan out, roughly 4,000 to 6,000 R&D employees could be cut from the current number of around 13,000.
Reports also suggest the company wants to reduce investments by €10 ($11.1 / £8.4) billion over the course of the next five years.
In August, Volkswagen painted a bleak picture as they noted a perfect storm of intense competition, political challenges, and a “persistently weak economic environment.” VW brand boss Thomas Schäfer also noted fixed costs have risen and electric vehicles have lower profit margins, which are putting a squeeze on earnings.
More recently, in September, Volkswagen Group CEO Oliver Blume warned the auto industry in Europe was in a “very demanding and serious situation.” He added that Germany has fallen behind in competitiveness and broached the topic of plant closures.
