Volkswagen Plans to Cut Nearly 50,000 Jobs in Germany by 2030 Amid Market Pressures

Kathmandu. German automotive company 'Volkswagen' announced on Tuesday its plan to cut approximately fifty thousand jobs in Germany by 2030.

Volkswagen's CEO stated, "A total of about fifty thousand jobs will be cut within the Volkswagen Group in Germany by 2030. An agreement to reduce 35,000 jobs by the end of 2024 had already been reached. The upcoming cuts will affect high-level brands and software companies."

The company stated that this decision was taken while facing challenges such as intense competition in China, stable demand in Europe, and high investment costs for electric vehicles. Although Volkswagen has long been a leader in the Chinese market, local competitors are putting pressure on the company's sales.

The CEO added at a press conference, "Local companies are trying to increase price competition by entering the European market. This will increase pressure on us. We need to make deeper efforts in cost-cutting measures."

Experts have analyzed Volkswagen's move as a strategy to ensure the company's sustainable operation while maintaining low and stable production costs.

This decision is expected to have a significant impact on employees, unions, and the market. The company plans to achieve significant annual financial savings from these cuts.