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Opinion: German Automakers Are Clearly Struggling

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Opinion: German Automakers Are Clearly Struggling
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German automakers are facing a wave of workforce cuts, according to the opinion piece. BMW has asked 8,000 employees to leave, while Volkswagen is set to lay off an estimated 35,000 people over the next few years in Germany, with a potential reduction of about 100,000 jobs globally. Porsche, a Volkswagen Group subsidiary, announced 5,000 staffing cuts as part of its restructuring. Mercedes-Benz is also seeing job reductions in China tied to declining sales in the region, though it has been working on a national restructuring plan that includes voluntary buyouts and ideas such as having fewer employees work longer hours alongside increased automation. The article cites CEO Ola Källenius, who said in June that the “cost per hour” must decrease and notes he took a 30% pay cut for the 2025 fiscal year while bonuses were withheld for the general workforce.

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