German car manufacturer Volkswagen (VW) could cut up to 30,000 jobs of its 300,000 employees in Germany in a restructuring, according to Manager magazine.
Even VW’s 13,000 employees in research and development in Germany will most likely see cuts of 4,000 to 6,000, with investments slashed by up to €20 billion in the medium term, according to the magazine.
Cost-cutting measures were expected and already hinted at earlier this month, but these numbers are more aggressive than anticipated. So far, VW has not confirmed this 30,000 figure, but fears are growing it will move ahead with drastic cuts shortly.
The news come after reports earlier this month that VW was planning to historic factory closures for the first time in the country’s 87-year history. The company cited soaring business costs, including energy and labor, along with logistics chains.
At the start of September, the Lower Saxony company’s chief financial officer, Arno Anlitz, had said the company is simply no longer selling enough cars and that two plants could be threatened by cost-cutting measures.
“The market is simply no longer there,” Anlitz had asserted at the beginning of September.
If VW goes ahead with the factory closures and layoffs, it could mark a major blow the ruling far-left government, which is already at a record low in terms of support in the polls. It would also add to a growing list of companies that are laying off workers and relocating to other countries.
VW has struggled with the transition to electric vehicles, with sales lagging and its key Chinese market dominated by domestic brands.
