Volkswagen to cut 1 lakh jobs in major global restructuring

German car manufacturer Volkswagen has announced to cut 1 lakh jobs by the end of the decade in a sweeping cost?cutting plan, marking the largest restructuring in the global auto industry.

The German carmaker announced a further reduction of about 50,000 positions on top of nearly 50,000 job cuts already agreed, amounting to about 15 per cent of the group’s workforce.

The company decided to halve the number of car models the Volkswagen group produces, which includes the Bentley and Audi brands, and considers to shut down four production



plants in Germany within the next eight years.

“Given intensifying global competition, shifting demand and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential,” the Volkswagen Group said in a statement.

Volkswagen employs over 6.5 lakh people across brands including Skoda, Seat, Porsche, Cupra and Lamborghini.

The group plans to streamline its model portfolio by around 50 percent and reduce its offering complexity by around 75 percent by 2035.