Volkswagen considers cutting employees as the electrified shift slows
Volkswagen, the German automaker, announced on Monday that it was exploring workforce reductions, including in the form of early retirement, to help it reach crucial cost-cutting targets imposed in its stuttering transition to electromobility.
“The situation is dire. Many markets are experiencing stress. “Our orders, particularly for electric vehicles, have been lower than expected,” Volkswagen brand president Thomas Schaefer told a staff meeting at the carmaker’s Wolfsburg headquarters.
“It is obvious that the status quo will not suffice. It will not function until considerable savings are made. He stated, “We must address critical issues, including personnel.”
A corporate spokeswoman told AFP that this may involve taking advantage of the “demographic curve,” which is commonly regarded as giving early retirement or not replacing people who have retired.
Volkswagen is investing tens of billions of euros on its electric vehicle transition, but the industry has been hampered by a sluggish global economy and low levels of demand.