The German automotive manufacturer Volkswagen AG announced on the 18th that, due to factors including geopolitical tensions and intensifying industry competition, the company is accelerating its business restructuring efforts. It is reported that by the end of this year, Volkswagen will cut 19,000 positions in its home country of Germany, with a target of reducing approximately 50,000 jobs by 2030.
Volkswagen AG CEO Thomas Schäfer addressed the company's annual general meeting on the 18th, stating that the implementation of the business restructuring and reform plan has now been underway for over a year and a half. Core measures include reducing management and operational costs, optimizing factory layouts, streamlining organizational structures, and accelerating technological R&D, all aimed at enhancing long-term competitiveness.
Company management indicated that relying solely on cost-cutting is insufficient to return to profitability. The coming years are critical, and the company will navigate a challenging market environment, further intensifying reform efforts to help the group adapt to long-term market volatility and achieve stable operations, assuming vehicle delivery volumes remain steady.
It is reported that Volkswagen AG has already achieved cumulative cost reductions of approximately 10 billion euros across its brand portfolio. The company's target is to achieve annual net cost savings of 60 billion euros by 2030. According to the plan, the Volkswagen Group will reduce its workforce in Germany by about 50,000 positions by 2030. By 2025, the average production cost reduction at its German factories is already projected to exceed 20%.
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