Volkswagen plans to eliminate a quarter of its management positions as part of a sweeping cost-cutting initiative aimed at improving profitability.
Chief Executive Officer Oliver Blume announced the move during a speech in Emden, emphasizing that all corporate divisions must contribute to the effort. 'Every area needs to play its part; this is a major undertaking that can only succeed together,' he said.
The management reductions follow broader restructuring plans unveiled earlier this year, including a sharper austerity drive and a new 'Target 2030' strategy. Blume indicated that the next phase of cuts would focus on non-production costs, including corporate roles, central functions, research and development, and sales.
The automaker has faced growing speculation over potential job losses, with reports citing up to 50,000 positions at risk globally. Blume clarified that this figure is not a formal target but a 'theoretical calculation' derived from cost-reduction needs. He noted that roughly half of the reductions would occur in Germany, with the remainder distributed across the group’s approximately 170 subsidiaries worldwide.
The announcement underscores Volkswagen’s intensified efforts to streamline operations amid persistent margin pressures and shifting market dynamics in the automotive sector.
