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German Carmakers Slash White‑Collar Jobs

Financial Times Companies •
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Volkswagen is axing hundreds of management roles, flooding the job market with 400‑500 managers who were cushioned by generous exit packages. The German auto giant is also cutting 50,000 indirect jobs in administration, product development and sales, and its Porsche unit plans to shed 5,000 back‑office positions.

The cuts come as VW’s internal analysis shows administrative costs 30 % above peers, driven by the complexity of its group structure. Even if the company ultimately removes 100,000 jobs—unlikely due to union opposition—it would still employ about 580,000 people, well above Toyota’s 390,000 and Hyundai’s 335,000.

Porsche’s restructuring is aimed at সৈতে disproportionate growth in indirect areas, with chief executive Michael Leiters noting that management positions were created too quickly. The plan will largely spare blue‑collar workers and involves merging business units and reducing board seats.

Other German makers are also trimming white‑collar staff: BMW offers voluntary redundancy to thousands in desk roles, while Mercedes‑Benz is “squeezing out managers like mad,” says executive‑search partner Magnus Tessner.