VW with challenges: profits drop drastically, job cuts planned!

VW with challenges: profits drop drastically, job cuts planned!

shocking news from the Volkswagen Group! The automotive giant suffered a drop in profits of almost 31 percent last year. The company earned only 12.4 billion euros, which was significantly below expectations. The reason for this is increasing costs and a dramatic decline in sales in China, which were once considered the most important market for VW. The group stated that the operational return on the result fell to 5.9 percent, after 7.0 percent in the last year, which indicates a challenging competitive situation, as vienna.at reported.

Despite these gloomy records, there are also some positive aspects: sales rose by almost one percent to 324.7 billion euros. In addition, the employees who benefit from a collective agreement will receive their bonus payments - a total of 4,799.50 euros per person, which is even higher than in the previous year. However, from 2027, significant cuts will be expected in the bonus payments. The members of the board, including VW boss Oliver Blume, also do without eleven percent of their salaries in order to strengthen the financial situation of the company, such as Tageschau.de

strategic changes in the focus

Volkswagen plans to significantly reduce its investments in the coming years and to put a total of around 165 billion euros in new facilities, technology and software by 2029. Part of these drastic austerity measures is a planned job reduction of almost 35,000 jobs in Germany until 2030. This is a direct consequence of the political uncertainties and trade restrictions that further burden the business. Despite the tense situation, VW wants to strive for sales growth of up to five percent this year. CEO Blume is optimistic that the operational return on sales will remain stable, even if the market for electric cars grows more slowly than expected.