Volkswagen to Cut 20000 Jobs Over EV Costs
VW announced largest workforce reduction ever.
Volkswagen announced it will eliminate 20,000 positions across its German manufacturing operations by 2028, representing the largest workforce reduction in the 88-year-old company's history. The cuts are the centerpiece of a $12 billion restructuring program aimed at funding the automaker's troubled transition to electric vehicles.
CEO Oliver Blume told employees the company faces 'existential competitive pressure' from Chinese manufacturers, particularly BYD, which now sells comparable electric vehicles at prices 30-40% lower than Volkswagen's offerings. VW's share of the European EV market has plummeted to 15% from 25% just two years ago, while its ID series of electric vehicles has consistently underperformed sales targets.
VW shares fell 3.2% in Frankfurt trading, dragging the DAX index down 0.4% on the session. IG Metall, Germany's powerful metalworkers' union, called the announcement 'devastating for workers and their families' and threatened strike action if the company does not negotiate adequate severance and retraining packages. German Economy Minister warned that VW's struggles reflect a broader crisis in European automotive manufacturing that requires a coordinated industrial policy response.
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