Automobile Giant To Cut 1 Lakh Jobs By 2030

Automobile manufacturing behemoth Volkswagen has joined the ongoing trend of mass layoffs as part of its restructuring plans and announced that it would eliminate 50,000 employees across its global workforce over the next few years.

This massive downsizing of its workforce comes on top of earlier layoff plans, bringing total number of cuts to 100,000 positions by the year 2030. It marks the largest corporate shakeup for the German auto giant in nearly nine decades.

Reports claim that falling profit margins, slower global sales, and fierce competition from rival companies, particularly electric vehicle makers in China are the major reasons for this unprecedented layoffs.

The company is said to be trimming its overall headcount, including senior management roles, while doubling down on its highest-selling models to lower manufacturing costs.

Volkswagen manufacturers expensive car brands like Audi, Porsche, and Skoda. The company currently employs over 660,000 people worldwide.

It is well known that several multinational technology firms like Oracle, META and Amazon have handed pink slips to thousands of their employees in the last few months in view of growing automation due to Artificial Intelligence boom.

Now, automotive companies also seem to be following IT firms to cut down its costs on employee salaries.