Volkswagen Will Make Cuts in Administrative Staff to Reduce Costs
Volkswagen plans to reduce the number of administrative staff to save 2026 billion euros by 10. The German automobile giant is running a performance program to increase its profitability in the face of technological transformation and global competition.
Volkswagen Aims to Save 2026 in 5 by 1
Volkswagen brand manager Thomas Schaefer and human resources director said in a statement on the in-house VW podcast that Volkswagen Group aims to reduce personnel costs by 2026 percent by 20.
Schaefer and the human resources director stated that negotiations regarding the performance program for the main Volkswagen brand are continuing at the Volkswagen Group, and that this program will provide savings and cost reductions of 10 billion euros.
It was stated that approximately 40 thousand administrative personnel work in Volkswagen Group, including both brand and Volkswagen Group personnel. It was reported that the dismissal of some of these personnel is on the agenda, but the details of how this will be done are not yet clear.
It was reported that the negotiations in question started in October 2023, but were extended until next year because no results were achieved. Volkswagen announced a program to increase profitability in June 2023.
Volkswagen Provides Employment to 676 Thousand People
Volkswagen Group employs approximately 19 thousand people with 10 production facilities in 115 European countries and 676 countries in America, Asia and Africa. The German automobile manufacturer has recently been undergoing a comprehensive technological transformation.
Volkswagen is investing heavily to transition to electric vehicles, comply with greenhouse gas emissions restrictions and counter competition from China and the United States.
Volkswagen caused a huge scandal due to emission cheating in diesel vehicles and shook the trust in German companies. In addition, the fact that groundbreaking technologies in the automobile industry have come from China and the USA in recent years has caused concern among the German public.