On Thursday (03\/09), German automotive giant Volkswagen (VW)\nannounced that it will cut a total of 100,000 jobs by the end of the\ndecade. This move is expected to be the largest restructuring in the\nhistory of the global automotive industry.<\/p>\n
The company stated that management and trade unions have agreed on a\nplan to cut an additional 50,000 jobs, in addition to the 50,000\nredundancies previously agreed upon.<\/p>\n
\u201cIt is systemically important to adjust the workforce to current\neconomic conditions,\u201d stated the Volkswagen Group, which oversees\nseveral brands including Audi and Porsche.<\/p>\n
The total of 100,000 jobs to be cut is equivalent to approximately\n15% of Volkswagen\u2019s global workforce. This figure exceeds the 50,000\nlayoffs undertaken by General Motors after the company declared\nbankruptcy in 2009.<\/p>\n
Trade unions and management were involved in an open dispute before\nagreeing to the plan. Unions accused management of a lack of\ntransparency with employees after news of the potential 100,000 layoffs\nappeared in the media before being communicated internally.<\/p>\n
Furthermore, Volkswagen stated that the long-term future of four of\nits main plants in Germany\u2014including Hannover, Emden, Zwickau, and\nNeckarsulm\u2014cannot be guaranteed. If closed, these plants would be the\nfirst Volkswagen facilities in its home country to be shut down\nentirely.<\/p>\n
\u201cIf these plants are truly closed, you could place a large black mark\non the map,\u201d said a long-serving employee at the Zwickau plant in\nSaxony, to news agency AFP. \u201cThis plant, including the surrounding jobs\nand our suppliers, is the driver for the entire region.\u201d<\/p>\n
Caught between US tariffs, competition from China, and the growth in\nelectric vehicle demand, Europe\u2019s largest car manufacturer is facing\nsignificant challenges.<\/p>\n
However, Volkswagen CEO Oliver Blume emphasised that the decision to\ncut 100,000 jobs is a \u201cstrong signal for the future of the Volkswagen\nGroup.\u201d<\/p>\n
Volkswagen has not detailed when the cuts will take place or how the\nworkforce reduction will be distributed across the various regions where\nthe company maintains factories and offices. However, the company stated\nit will shift its focus to North America and strive to increase exports\nto countries in the Global South.<\/p>\n
The plan also includes investments worth hundreds of billions over\nthe coming years. Volkswagen aims to enhance its technological\ncapabilities through research and development while simultaneously\nincreasing competitiveness.<\/p>\n
One of the steps involves a corporate restructuring expected to\naccelerate decision-making and reduce the number of business units and\ncompany holdings by approximately one-third.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/major-vw-restructuring-100-000-jobs-to-be-cut-1788516054", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }