Written by Cláudio Afonso | LinkedIn | X
The embattled German automaker Volkswagen has denied reports suggesting it plans to lay off up to 30,000 employees.
“Volkswagen must reduce costs at its German locations to secure future investments,” a company spokesperson told DPA, adding that specific numbers, such as the 30,000 job cuts mentioned in Manager Magazin, could not be confirmed.
“How we achieve this goal together with employee representatives will be discussed in upcoming talks,” the spokesperson added.
Manager Magazin reported earlier this week that the German carmaker might cut jobs in the medium term and scale back its investment budget.
According to the report, VW’s Chief Financial Officer, Arno Antlitz, is aiming to reduce planned investments over the next five years to €160 billion, down from the previous target of €170 billion for the 2025-2029 period.
Volkswagen’s core brand, VW Passenger Cars, is struggling with high costs, prompting the company to terminate a long-standing job security agreement with unions, potentially leading to plant closures and layoffs.
The company’s management is under pressure to raise its operating return to 6. per cent in the coming years, according to brand CEO Thomas Schäfer. Negotiations with the powerful IG Metall trade union are set to begin next week.
Economy Minister Robert Habeck acknowledged the importance of Volkswagen to the country, describing the automaker as “central to Germany.”
Habeck, who is also the vice chancellor, said the government is considering ways to support the company amid faltering electric vehicle (EV) sales, following the end of government subsidies.
The Minister is scheduled to visit VW’s Emden plant in Lower Saxony on Friday.
Written by Cláudio Afonso | LinkedIn | X
