Volkswagen is terminating employment for 20,000 workers due to financial setbacks.
Volkswagen's Revamp: 20,000 Employees Agree to Early Exits
Dive into the details, as Volkswagen pushes forward with its cost-slashing scheme, a whopping 20,000 employees have signed up for the early exit party. The decision, which took place during a works council meeting at the automotive behemoth's Wolfsburg headquarters, signifies a long-term restructuring plan aimed at trimming expenses and sprucing up business efficiency [1][2][3].
According to the plan, the German behemoth hopes to shrink its German workforce by a colossal 35,000 by 2030 [1][2]. Moreover, there's a possibility of implementing a four-day workweek on production lines [1].
The Profit Drop
The changes emerged in response to a considerable drop in profits. In the initial quarter of 2025, the group's revenue nosedived an eye-watering 40% [1]. At present, the company anticipates that this year's financial outcome may fall on the lower end of current predictions, necessitating immediate efficiency improvements [1].
Global Motor Vehicle Sales
In the middle of spring, our site reported earlier that a whopping 7,324,712 cars were sold worldwide [4]. So far this year, the global passenger car market has encounters growth, with sales jumping 5.9% from January to April 2025, resulting in a staggering total of 29,243,912 vehicles sold—almost the size of Delhi's population [4].
Tops in Sales
China is the kingpin when it comes to new car sales, with a staggering 2,055,153 cars sold in the said period. The United States trails behind, with 1,473,995 units sold [4]. West European car markets suffered a combined 2.2% decrease in April, totaling 1,085,892 units [4]. Eastern Europe saw a 1.3% drop in sales, with 367,605 units sold in April [4].
Additional Sales Figures
In South America, 248,039 vehicles were sold in a month, registering a 3.6% growth compared to last year [4]. Some of the largest motor vehicle market players include Japan (339,790 cars; +10.5%), South Korea (148,332 units; +6.9%), and Canada (178,787 units; +7.8%) [4].
Sources:
- Handelsblatt: Translation of the original article at Die Welt
- Bloomberg
- Reuters
- Statista
In an effort to boost business efficiency and cut expenses, Volkswagen might consider strategies beyond workforce reduction, such as integration of technology in finance and industry to improve operational efficiency.
With the global passenger car market witnessing an impressive growth, there's potential for the automotive industry to expand and collaborate with technology companies, creating opportunities for business and finance in the future.
