By Admin 
Automobile company Volkswagen Group is planning to reduce costs on a large scale. The company may lay off about 1 lakh employees in the coming time. Apart from this, preparations are also being made to close many factories. In fact, Volkswagen Group CEO Oliver Bloom has proposed major changes in the company’s management board meeting.
Under this plan, the company wants to make a big reduction in its total number of employees. At present, about 6.57 lakh employees work in Volkswagen Group, but the company’s target is to reduce it to about 5.57 lakh. This means that about 1 lakh jobs may be affected in the coming time.
What is the reason for the cut?
This proposal will be discussed in detail in the supervisory board meeting to be held next week. If the board approves this plan, it could be one of the biggest cuts in Volkswagen’s workforce. The company believes that it has become necessary to reduce expenses to maintain competition in the changing auto market.
The company not only wants to reduce the number of employees, but is also preparing to close many of its production centres. A proposal has been made to lock four factories in Germany. These include Audi’s Neckarsulm unit, Volkswagen plant in Hanover, Zwickau and Emden plants. Along with this, the company is also working on a separate plan to set up a new component plant.
This is the target of the company for the next 10 years
Volkswagen’s target is to reduce its total costs by about $12.5 billion i.e. about Rs 1.20 lakh crore in the next 10 years. The company believes that by reducing expenses, it will be able to face future challenges in a better way and will be able to invest more in new technologies including electric vehicles.
Volkswagen is currently facing many challenges. Tariffs imposed by America, increasing competition from China’s electric car manufacturer BYD and rapid changes in the global auto market have increased the pressure on the company. This is the reason why the company is moving towards changing its entire business model.
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