🔋Slow in electric vehicle conversion, Volkswagen is considering laying off at least 20,000 employees!
⚡Former Volkswagen CEO Herbert Diess announced two years ago that the company would have to make massive layoffs if it delayed its electric vehicle transformation. Diess’s bad scenario is about to come true.
🚗With a total of more than 675,000 employees worldwide, Volkswagen is considering laying off 20,000 employees to increase its operating profit margin to 6.5% by 2026 and save 10 billion euros, according to German media.
🛑 Former CEO Diess made the following statement in October 2021: “If the MEB platform fails to have the expected impact and we are slow in the electric vehicle transformation, we may have to lay off up to 30,000 employees.”
💰 In the European market, where it is the strongest, the German giant, whose electric vehicle orders decreased by half on an annual basis according to the last quarter’s data, decided to temporarily stop the production of electric models in two factories. There is concern that the decline in production will continue in 2024.
Calculations for downsizing at Volkswagen show that at least one factory should be closed. According to the same calculations, it indicates that 20,000 layoffs will not be sufficient for financial recovery.
