30.01.2025 12:21
Germany's leading automotive company Volkswagen is struggling to cope with the financial crisis. Due to the economic challenges it has faced recently, the company has laid off thousands of employees. The company's financial situation cannot seem to improve as car sales have declined worldwide.
The German automotive giant Volkswagen is considering additional measures to reduce costs despite the agreement reached with unions last year for the layoff of 35,000 employees. The board believes that the current cuts may not be sufficient for the company to achieve its financial targets.
35,000 LAYOFFS INSUFFICIENT
According to a report by Handelsblatt, Volkswagen's management is concerned that the mass layoff agreement made at the end of last year will not be enough for the company to reach its financial goals. Challenging market conditions and increasing competition may force the company to implement further cost-cutting measures.
PROFITABILITY TARGET DELAYED BY THREE TO FOUR YEARS
Volkswagen's plan to achieve a profitability margin of 6.5% has also been postponed. The company has decided to delay this target, initially set for the end of 2025, by three to four years due to current economic conditions and market dynamics. This situation indicates that the company may adopt more comprehensive savings measures to maintain its long-term financial stability.
GLOBAL ECONOMIC UNCERTAINTIES AND SECTOR TRANSFORMATION HAVE HAD AN IMPACT
As Europe's largest car manufacturer, Volkswagen feels the need to tighten cost controls due to global economic uncertainties and the transformation process in the automotive sector. The company's management will clarify how it plans to navigate this process in the upcoming period. However, the new measures to be taken may have significant effects on the workforce and production processes.