The German auto industry continues its large-scale restructuring—and now management staff are facing mass layoffsVolkswagen has asked headhunters to place 400–500 executives, but the market is not ready for such a large number: “We simply don’t have 400 openings for top managers,” admitted one recruiter.
Volkswagen is already laying off factory workers, but also plans to cut another 50,000 employees in “non-production” divisions—administration, product development, and sales.
The initial plan called for cutting 50,000 jobs in Germany by 2030 across the Volkswagen, Audi, and Cariad IT divisions. However, an internal audit revealed that this was insufficient. Volkswagen’s administrative expenses turned out to be 30% higher than those of other automakers.
Even if Volkswagen eventually cuts 100,000 jobs, the company will still have about 580,000 employees. By comparison, Toyota has 390,000 employees and Hyundai has 335,000.
Porsche has announced a new program to cut 10,900 jobs. BMW has also begun streamlining operations: the company has offered voluntary severance to thousands of office workers and expects to cut 8,000 jobs by the end of 2027.
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