Volkswagen's cost-cutting measures may impact administrative workers

Volkswagen is implementing a cost reduction plan to save around 10 billion euros (approximately $11.4 billion) by 2026. German media suggest that these cuts could lead to job losses.

German magazine "Handelsblatt," referencing an internal podcast from the Volkswagen group, reported potential redundancies in the company's administrative departments.

Administrative personnel costs are projected to be reduced by one-fifth before 2026, which may necessitate layoffs - according to the conversation between Gunnar Kilian, the group’s head of human resources, and Thomas Schaefer, the head of the Volkswagen brand.

As "Handelsblatt" points out, Volkswagen employs roughly 40,000 administrative workers. A one-fifth reduction equates to nearly 8,000 people. The company representatives have not yet commented on these reports. However, it's noteworthy that Volkswagen is not the only automotive company grappling with financial challenges.

In recent months, Ford has also faced a similar predicament, necessitating the company to let go of some of its workforce.