How Volkswagen ended up with a huge workforce
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Volkswagen has built one of the largest workforces in the global auto industry. At nearly 630,000 people - 680,000 if you count joint ventures in China - VW employs around 60% more workers than Toyota, 140% more than Stellantis and nearly 240% more than Ford. That headcount was once a sign of Germany's industrial might and VW's huge profits. Now, it's become a massive burden, one that's forcing the company to make painful job cuts to survive against agile Chinese competitors. After already trimming thousands of positions last year as profits came under pressure , Volkswagen is now preparing to slash up to 100,000 jobs worldwide, including tens of thousands in Germany . It also wants to close four German factories. These cuts include VW luxury brands like Porsche and Audi. Other German automakers and suppliers are facing similar pressures. Mercedes-Benz is planning to cut several thousand jobs, and suppliers like Bosch have announced large cost savings. Much of VW's headcount issue stems from long-standing strategic decisions. Meghan Ostertag, an analyst for economic policy at the US-based Information Technology and Innovation Foundation, says VW's much larger workforce was needed because the firm chose to control more stages of production than its peers. "The company makes many of its components and software internally, increasing the demand for labor and, of course, labor...
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