Volkswagen Plans to Cut 19,000 Jobs This Year

[Company Update] Volkswagen Group plans to cut 19,000 jobs in Germany by the end of this year.

Core Development: Mandatory Target of Over 28,000 Job Cuts by 2030

Oliver Blume confirmed that Volkswagen has set a mandatory target of cutting more than 28,000 jobs cumulatively by 2030, and will report on progress at the annual general meeting on June 18.

Key Metrics: Cost Reductions Amid Declining Sales

By 2025, production costs at Volkswagen's German plants have already been reduced by over 20%; however, first-quarter deliveries fell 4% year-over-year to 2.05 million vehicles, primarily due to weak demand in China and tariff pressures in the U.S.

Strategic Rationale: High Costs Driving Efficiency Reforms

Blume stated that excessively high labor and energy costs in Germany, along with burdensome regulations, are forcing the group to improve efficiency through layoffs and restructuring, in order to compete with Chinese automakers like BYD and cope with the phasing out of electric vehicle subsidies.