Volkswagen Could Cut 100,000 Jobs Amid Business Restructuring

Volkswagen Group has indicated that up to 100,000 jobs could be affected as the company shifts its focus to maintain business viability amid declining sales and increasing competition from China.

In an internal memo, CEO Oliver Blume suggested that an additional 50,000 jobs could be cut globally, on top of the 50,000 positions already agreed for elimination. “We are currently evaluating across all brands, companies, and regions how many adjustments are truly necessary and feasible,” Blume wrote in the memo.

German media outlet Bild reported that models at risk of being discontinued include the Volkswagen Jetta sedan and Taos SUV, the Skoda Fabia hatchback, the ‘coupe’ style Sportback versions of the Audi Q5 and Audi Q6 e-tron, and the Porsche Cayenne Coupe. Even electric vehicles are not immune, with the all-new Cupra Raval and the recently updated Porsche Taycan potentially not continuing beyond their current generations.

Volkswagen Group was the world’s largest car manufacturer in 2019, with deliveries of 10.97 million vehicles that calendar year, slightly ahead of Toyota Motor Corporation’s 10.74 million units. However, in 2020, deliveries fell 15.2 per cent to 9.3 million units due to disruptions triggered by the COVID-19 pandemic, and further declined to 8.3 million units in 2022. In the first quarter of this year, the company’s operating profit and return on sales dropped 14.3 per cent compared to the same period last year, while total sales, excluding joint ventures in China, fell 6.9 per cent.