Will Volkswagen make the difficult decision and lay off thousands of people in a round of layoffs?
By now you are probably well aware that the automotive industry is not doing well. In recent years, manufacturers have invested billions in the development of electric cars. Unfortunately for them, sales are lagging, causing them to miss out on much-needed revenue and ultimately profit. Continuing this way is not possible.
Volkswagen layoffs
Sooner or later, tough decisions will have to be made. At the moment, there is no indication that we will all spontaneously buy a new (electric) car. In short, what will happen? The Volkswagen Group already sounded the alarm earlier this month and that was already a harbinger that something is about to happen.
The end of a treaty was the first sign that a round of layoffs might be coming. Now Volkswagen has announced in the German magazine Manager Magazin that 30,000 jobs are at risk. No hard decision has yet been made to actually say goodbye to all those employees, but don’t be surprised if this is still done in the short term.
For Volkswagen, a reorganization seems necessary to continue to exist healthily. With such a reorganization, forced redundancies are inevitable. Costs must be cut.
Volkswagen is the largest employer in Germany, with around 130,000 people employed. That would mean that VW would continue with around 100,000 people after a reorganization to get things back on track.
We will certainly hear more about this in the coming period. Of course, it is not as easy for the company as it sounds. Think of protesting employees, unions that will interfere and probably the German government also wants to say something. The latter is not unthinkable, given the major economic impact of a company like Volkswagen on the German economy.
Comments
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Johanneke say
I’m in Germany for a few days, just getting some sandwiches at the supermarket. Every newspaper I saw had a headline along the lines of 30k jobs gone at VW?
Wouldn’t be good for the people here, but somewhere I also think VW itself is to blame for the current situation. The Golf 8 was mediocre, id.3 and id.4 too. They must have lost customers after the stretching chains and popping TSI engines from around 2010.
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O plate say
The EU’s need for rules is causing the economy to collapse in the EU. A planned economy didn’t work for the Soviets and it won’t work here either. The only tech industry we have, the car industry we are killing for ideological reasons, the only innovation in other areas that has been invented in Europe in the last 20 years is cardboard straws.
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cdlop01 say
Dieselgate, ID fiasco, China debacle, heavy loss of VW market share in the US, unions holding the company in a stranglehold, arrogant managers and rat race with Toyota completely lost.
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GJZ say
And not to forget the very mediocre software that has been developed, they should not put everything into screens that are cheaper.
Cheap is expensive
