German Auto Giants Slash 60,000 Jobs and Cut Capacity Amid Transition Pressures

Volkswagen, Porsche, BMW, and Mercedes-Benz have recently announced successive rounds of layoffs and production cuts to address cost pressures stemming from the transition to new energy vehicles and shifting market dynamics. Volkswagen Group plans to eliminate 50,000 jobs by 2030; as of now, approximately 28,000 employees have already left voluntarily, and factory costs at its German production sites fell by over 20% last year. The group is also reducing its global annual production capacity from 12 million vehicles to 9 million—a cut of 3 million units. Porsche aims to cut around 3,900 positions by July 2026. BMW intends to reduce its global workforce by up to 5% by the end of 2026, affecting as many as 7,700 employees. Mercedes-Benz initiated its first round of layoffs in February last year, impacting roughly 15% of its workforce, and this month announced structural adjustments at Beijing Benz Automotive Co., Ltd. (BBAC), planning to reduce staff from about 900 to fewer than 600. Combined, these four automakers are cutting nearly 60,000 jobs.