According to a story from the Handelsblatt published on Monday, which cited an internal corporate podcast as its source, Volkswagen (VOWG_p.DE) might eliminate administrative staff roles as part of savings and cost-cutting measures up to 10 billion euros ($10.8 billion) by 2026.
By 2026, administrative personnel costs will decrease by a fifth, according to Handelsblatt, which cited an internal podcast with brand boss Thomas Schaefer and human resources head Gunnar Kilian. It is expected that staff layoffs will be one of the methods.
According to Handelsblatt, Volkswagen has around 40,000 administrative staff members, including brand and group professionals. The publication also stated that discussions are now taking place with the work council.
Volkswagen representatives could not be reached for comment right away. The Volkswagen passenger vehicle brand said in June that it plans to adopt savings and cost-cutting initiatives totaling 10 billion euros by 2026 to meet a return on sales objective of 6.5%.
It was initially planned for critical metrics to be in place by October, but now it is anticipated that they will be specified by the end of the year.
Volkswagen has demonstrated a proactive approach to problem-solving by implementing clever cost-cutting initiatives, positioning the company to achieve sustainable success in the automotive industry. Volkswagen’s agility and emphasis on operational efficiency put the company in a position to establish new norms for the industry as the landscape of the automotive industry continues to shift.
In conclusion, Volkswagen is an industry leader primed for continuing success because of its creative approach to operational efficiency. This strategy includes digital transformation, lean manufacturing, and a focus on sustainable technology.
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