Volkswagen plans to lay off 100,000 workers globally

German automotive giant Volkswagen Group confirmed that it is considering laying off up to 100,000 workers worldwide. This new target, which is twice the size of the previously announced 50,000 layoff plan, covers all group brands such as Porsche, Audi, Seat, and Skoda.

This radical decision by the company comes after its operating profit, which was 22.6 billion euros in 2023, plummeted to 8.9 billion euros last year. Among the main factors squeezing Volkswagen's profit margins are sales declines in key markets, including a sharp drop in China, and the Trump administration's tariffs. Additionally, the competitive pressure from Chinese rivals aggressively entering the European market with lower production costs and new technologies is among the factors.

Volkswagen CEO Oliver Blume stated that costs are 20% higher compared to rivals, emphasizing that a structural efficiency increase across the company is essential. Blume also noted that they could not confirm alternative usage scenarios for four factories in Germany, particularly the electric vehicle factories in Zwickau and Emden. While nationwide protests and union negotiations are expected to gain momentum in the upcoming period, some analysts suggest that the 100,000 figure could be a negotiation tactic and the final number might be lower.