Volkswagen will reduce its workforce by 19,000 employees in Germany by the end of the year, as part of a streamlining strategy.

Volkswagen, under the leadership of CEO Oliver Blume, has announced that it will reduce its workforce by 19,000 employees by the end of this year, according to a prepared speech for the General Meeting of Shareholders.

The company has already agreed to eliminate over 28,000 jobs by 2030, as part of a strategy to adapt to the challenges in the European automotive industry, such as competition from Chinese manufacturers and low demand for electric vehicles. Blume mentioned that they have managed to reduce factory costs in Germany by over 20% by 2025.

The staff reduction will be achieved through early retirements and voluntary departures, avoiding forced layoffs. Volkswagen aims to improve profitability in the domestic market, where costs are significantly higher than in other regions, in the context of a struggling European automotive market.