Volkswagen Decided to Contraction: Here is the Giant Company’s New Plan!

German automobile giant Volkswagenuntil 2026 10 billion euros It set a savings and cost reduction target of . In this process, it was announced that significant cuts may be made, especially in the employment of administrative personnel.

According to Volkswagen brand manager Thomas Schaefer and human resources director in the in-house VW podcast, Volkswagen Group plans to reduce personnel costs by 20 percent in the coming years. The company has approximately 40 thousand administrative staff working both within the brand and the group, and this savings plan is being discussed as part of the discussions with the works council.

Volkswagen’s Performance Program and Future Strategies

Negotiations, which begin in October 2023 and could last until next year, include a performance program focused on the main Volkswagen brand. This program, announced in June 2023, aims to increase the company’s profitability. Volkswagen Group has 115 production facilities worldwide, employing approximately 676 thousand people in 19 European countries and 10 countries in America, Asia and Africa.

Challenges Facing the German Automotive Industry and Volkswagen’s Position

In recent years, the German automotive industry has been negatively affected by factors such as greenhouse gas emission restrictions and competition from China and the USA. Volkswagen aims to reduce costs and reorganize the company structure by making strategic decisions in these difficult market conditions.

In addition, the emission scandal in diesel vehicles of German automotive companies has dealt a great blow to the companies’ reputation and diesel vehicle sales. However, the fact that most of the technological innovations in the automobile industry come from China and the USA causes serious debate in Germany.

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