Volkswagen to fire 12% of its India workforce

Volkswagen is implementing a restructuring plan in India that will result in the elimination of around 12% of its workforce, according to sources familiar with the matter. The German automaker is seeking to lower costs before its next investment cycle in the country, with reductions to be carried out in quicker tranches through 2027.

The program aims to save tens of millions of dollars at its India operations by the time Volkswagen launches new models, including an electric vehicle. Skoda Auto Volkswagen India's managing director and CEO, Piyush Arora, stated that the company is optimizing operations and expects to expand its local engineering team as it strengthens its position as a key manufacturing, engineering and export hub for the group.

The cost-saving measures come amid broader restructuring efforts by Volkswagen, which includes cutting 50,000 additional jobs globally and halving its vehicle model lineup by 2035. The India program is separate from the global overhaul and is due to run through 2027, as Volkswagen seeks to address the challenges posed by slowing demand, high EV investments and increased competition from Chinese manufacturers in the Indian market.