Volkswagen is considering workforce reductions of up to 100,000 positions globally as the automaker confronts a severe profitability crisis.
The German carmaker reported that its net profit for the second quarter fell sharply, underscoring the mounting pressure on its business model amid intensifying competition in and from China.
The potential job cuts represent a significant escalation in Volkswagen’s restructuring efforts.
The company is grappling with a dual challenge: defending its market share in Europe against aggressive pricing from Chinese manufacturers while simultaneously navigating a difficult competitive landscape within China itself.
The scale of the proposed reductions signals a fundamental shift in the group’s operational strategy as it seeks to streamline costs and improve efficiency.
Financial results for the April-to-June period revealed a stark contraction in earnings.