New Delhi, September 22: Volkswagen AG has reportedly begun to lay off employees in China as the company faces challenges in the region. The job cuts can be seen as part of VW’s strategy to manage costs amid a decline in sales and a shift toward electric vehicles (EVs) in the Chinese market. Volkswagen is looking to reduce its workforce to align with the changing automotive industry. These job cuts at Volkswagen are said to adapt to the changing demands of the EV market and manage declining sales.
As per a report of Bloomberg, Volkswagen is targeting job cuts in China to lower costs as sales slump. Over the next 3 years, VW plans to lay off a significant number of employees. Customer slump in China, along with the market’s shift toward electric vehicles, has turned Volkswagen into this spot, according to a report of Hindustan Times Auto. The company may be responding to these challenges by restructuring its workforce to align with its business requirements. IBM Layoffs: Tech Giant Silently Lays Off Around 1,000 Employees Amid Plan To Adopt AI, Make Them Sign NDA To Not Talk Specifics, Says Report.
Volkswagen AG has started to lay off corporate employees in China. As per reports, several local employees are also part of the layoffs. The company’s luxury brand, Audi, may also consider to reduce its workforce. These measures can be seen as a part of a plan to reduce costs by the year 2026. In August, the company reportedly said that a drop in profits during the second quarter was partly due to a slowdown in China. Sales in the country fell by 7.4 per cent in the first half of the year because of tough competition from local companies like BYD Co. and were down 24 per cent compared to 2019. Qualcomm Layoffs: Chip Giant To Lay Off 226 Employees in US Later This Year as Part of Business Diversification Strategy, Starting in November.
According to reports, Volkswagen China has around 90,000 employees, with most being a part of its joint venture. Some employees were told about the layoffs earlier this week. Some foreign employees are being sent back to Germany, and some mid-to-high-level managers are laid off. Volkswagen’s luxury brand, Audi, has over 700 employees, and they may be affected by the effort to improve efficiency.
(The above story first appeared on LatestLY on Sep 22, 2024 05:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
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