with sales declining and costs cut to increase efficiency, is volkswagen planning to lay off employees in china?
2024-09-23
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recently, media reported that volkswagen china will lay off hundreds of employees, and audi brand will also lay off employees to help volkswagen group achieve its goal of reducing management costs by 20% globally within three years. industry insiders analyzed that volkswagen laid off employees in china because it is facing development difficulties in the chinese market. in the first half of the year, volkswagen delivered a total of 1.345 million vehicles in the chinese market, a year-on-year decline of 7.4%, and the share of the chinese market fell from about 40% to 30.9%. at the same time, volkswagen lost 193 million euros in the chinese market in the second quarter.
volkswagen is launching a global cost-cutting campaign to save costs.
earlier, media reported that volkswagen may lay off 30,000 employees in germany. later, media reported that volkswagen has also started to lay off employees in the chinese market, with the goal of helping it reduce management costs by 20% worldwide within three years.
according to insiders, volkswagen china will lay off hundreds of employees, and audi brand will also lay off employees. in response, volkswagen said that this is part of its global cost reduction plan, but it did not disclose the specific number of layoffs to the outside world. it is reported that volkswagen has about 90,000 employees in china, and the employees laid off by volkswagen china this time only account for a small part.
recently, volkswagen china said in an internal email that it will contribute to volkswagen's global cost reduction and efficiency improvement. the email also mentioned that volkswagen china's reforms will include structural reorganization, process digitization, operation streamlining and localization of some tasks.
industry insiders analyzed that volkswagen laid off employees in china because it was facing development difficulties in the chinese market. in the first half of the year, volkswagen delivered a total of 1.345 million vehicles in the chinese market, a year-on-year decline of 7.4%. the share of the chinese market fell from about 40% to 30.9%. at the same time, volkswagen lost 193 million euros in the chinese market in the second quarter.
volkswagen's development in china has been frustrated mainly because it is still unable to keep up with chinese automakers in its electrification transformation. at the same time, the rapid decline in demand for traditional fuel vehicles in the chinese market has also put volkswagen in a difficult position. earlier, saic volkswagen was reported to be closing its nanjing factory. (china economic net guo yue/translation)
source: china economic net
