Earlier this month, Chief Executive Oliver Blume told employees that the company must end a three-decade-old job protection pledge that would have banned layoffs until 2029.
He German automobile giant Volkswagen has denied reports that it plans to lay off 30,000 employees.
“We do not confirm this figure,” a Volkswagen spokeswoman said, following reports of the proposed job cuts in German business magazine Manager Magazin.
“One thing is clear,” he said.Volkswagen has to reduce its costs “Only then will the brand be able to earn enough money for future investments.” “How this goal can be achieved together with employee representatives is part of the upcoming discussions,” he said, adding that VW could not confirm the figure mentioned.
Investment funds fall
Manager Magazin reported that the carmaker was considering cutting jobs in the medium term. CFO Arno Antlitz is also planning to cut jobs. cut funding of investments over the next five years, up to 160 billion euros.
This represents a reduction of 10 billion euros compared to VW’s previous announcement that its medium-term planning target between 2025 and 2029 would be 170 billion euros.
Earlier this month, CEO Oliver Blume told employees that the company would have to end a three-decade-old job protection commitment that would have prevented layoffs until 2029.
The statements have sparked outrage among workers’ representatives and concern among German politicians.
Analysts at investment bank Jefferies had suggested VW was considering closing two to three plants, which could put up to five German sites at risk and threaten 15,000 jobs.
Research and development in danger
However, according to an article in Manager Magazine, job losses could double that figure, with many of them going to research and development departments.
In recent years, investors have been critical of VW’s investment spendingarguing that this reduces the amount of money available as dividends to shareholders.
The German government has also weighed in on the conversation. German Economy Minister Robert Habeck said that The German government is studying ways to support Volkswagenas he recognises the importance of the company for the country. “VW is of vital importance for Germany,” he said.
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