Azernews.Az

by Alimat Aliyeva

Volkswagen (VW) plans to cut around 19,000 jobs by the end of this year as part of a broader cost-cutting and restructuring strategy, AzerNEWS reports.

The company has reportedly prepared a speech for CEO Oliver Blume, which he is expected to deliver at the annual shareholders’ meeting on June 18. According to Reuters, the planned workforce reductions are part of a long-term strategy to reduce the total number of employees by approximately 28,000 by 2030.

In recent years, Volkswagen has been under increasing pressure due to slowing global demand, weaker-than-expected sales of electric vehicles, and growing competition from Chinese automakers. These factors have forced the company to accelerate efficiency measures and rethink its production strategy.

Back in 2024, VW announced plans that included potential factory closures and significant workforce reductions as part of its transformation toward a more competitive and cost-efficient structure.

According to the same reports, the upcoming announcement will highlight that production costs at VW’s German plants have already been reduced by more than 20% by 2025. The company is also expected to emphasize investments in automation and digitalization as key tools for maintaining competitiveness in the rapidly changing automotive industry.

Interestingly, industry analysts note that this restructuring could mark one of the most significant transitions in VW’s modern history, as the company tries to balance traditional combustion engine production with its ambitious shift toward electric mobility.