Stellenabbau
Volkswagen, Europe’s largest automaker, is facing significant profit declines and has announced plans to cut 50,000 jobs in Germany by 2030 as profits nearly halved. The restructuring could also impact suppliers in Austria.
Volkswagen is responding to a sharp downturn in earnings, with profits falling by around 44 percent from €12.4 billion to €6.9 billion. The company intends to implement further cost-saving measures. While the impact on Austrian suppliers remains uncertain, the Automotive Cluster (AC) of Business Upper Austria, a network for the automotive sector, currently sees no immediate signs of concern regarding order volumes. Rudolf Mark, a spokesperson for the cluster, stated, “Currently, we, the companies in ‘Supplier Country Upper Austria,’ do not see the situation as critical. Of course, we need to closely monitor developments.”
Automotive Cluster Remains Optimistic
Mark continued, “But from my current understanding, VW is doing its homework to improve profitability and thus be able to develop attractive models in the future.”
Austrian Jobs Tied to VW Contracts
More than 130 Austrian companies supply German VW plants, with approximately 6,300 jobs directly dependent on VW contracts, according to a study by ASCII, the logistics center of the Fachhochschule Oberösterreich and the Complexity Science Hub (CSH). The majority of these businesses are located within the automotive clusters in Upper Austria and Styria.
Significant Profit Decline Drives Restructuring
The 44 percent profit decline prompted Volkswagen’s announcement of substantial job cuts. The full impact of this profit reduction on future sales figures and, on its suppliers is still being assessed, according to the Automotive Cluster spokesperson. The company’s revenue remained stable at €322 billion, with a projected 3 percent increase for the current year.
Chief Financial Officer Arno Antlitz said on Tuesday that the year was marked by geopolitical tensions, tariffs, and intense competition. He acknowledged that the company’s restructuring efforts are showing progress and that net cash flow exceeded expectations. “However, the current result level of 4.6 percent before restructuring is not sufficient in the long term.”
