New Delhi, Sept 4 (NVI) German automaker Volkswagen has decided to cut 1,00,000 jobs, including 15 percent global workforce, by the end of the decade.
In a statement, the company said its management and labour representatives had approved plans to eliminate around 50,000 additional positions, building on 50,000 job reductions already agreed.
The cuts represent about 15 per cent of Volkswagen’s global workforce and underscore the scale of the pressure facing the 10-brand group as it seeks to reduce costs and adjust production to weaker demand and intensifying competition.
The restructuring would surpass the roughly 50,000 jobs General Motors eliminated after filing for bankruptcy protection in 2009, making it the largest workforce reduction undertaken by a global automaker.
“It is essential to systematically align workforce levels with economic realities,” Volkswagen said.
Volkswagen also said the long-term future of four German plants in Hannover, Emden, Zwickau and Neckarsulm could not be guaranteed.
The company said it was examining alternative uses for the sites.
A closure of the plants would mark a historic shift for Volkswagen, as the automaker has never before shut a full-scale factory in its home country.
The agreement comes as Europe’s largest automaker faces mounting pressure to improve profitability and competitiveness, particularly in its core German operations, where high costs and the transition to electric vehicles have weighed on the business.
Volkswagen’s portfolio includes its namesake brand as well as Audi, Porsche, Skoda, Seat and other marques.
The company has been negotiating with unions over restructuring in Germany as it seeks to bring its cost base in line with production levels and changing market conditions.
The planned reductions will be carried out through the end of the decade, Volkswagen said. (NVI)
