VW Plans 100,000 Job Cuts as Europe’s Layoff Wave Spreads
(MENAFN) Job cuts are sweeping across the continent’s biggest employers, from car plants to bank back offices. Weak demand, US trade barriers and Chinese competition are forcing companies to cut costs and automate.
The layoffs reach well beyond manufacturing, hitting transport, finance, telecommunications and hospitality. Some target European operations only, while others belong to multi-year global restructuring programs.
Pressures vary by sector. Industrial firms are reshaping output to match shifting demand, while banks and insurers are turning to artificial intelligence (AI) for work once done by administrative staff.
Automakers and suppliers take the hardest hit
The auto industry is absorbing the deepest cuts. Established manufacturers face high production costs, slower-than-expected electric vehicle (EV) adoption and growing competition from Chinese rivals. The central challenge is funding new technology while keeping current operations profitable.
Volkswagen plans to shed about 100,000 jobs worldwide by 2030, a figure that includes reductions announced earlier. Among suppliers, Bosch will cut more than 13,000 jobs to sharpen its competitiveness, and ZF Friedrichshafen plans to eliminate 14,000 positions. Schaeffler has announced 3,460 job cuts in Europe as profit margins come under strain. French carmaker Renault is trimming its global engineering workforce by 2,400 positions.
Heavy industry and energy retrench
Heavy industry and energy firms are also cutting staff as they restructure long-established operations and adapt to the move away from fossil fuels.
Thyssenkrupp plans to cut 11,000 jobs to streamline its business. In Romania, energy producer Complexul Energetic Oltenia is reducing headcount by 1,700 amid decarbonization and restructuring. Also in Romania, Damen Shipyards Mangalia plans to dismiss 1,011 employees after entering bankruptcy proceedings.
Transport and logistics feel the squeeze
Companies that move goods and passengers are shrinking too, citing rising operating costs and uncertainty over global trade.
Deutsche Bahn, Germany’s main rail operator, plans to cut 30,000 jobs to rein in costs. Swiss logistics group Kuehne+Nagel will eliminate 2,000 positions worldwide, citing excess capacity and geopolitical risks. Dutch airline KLM will cut 1,000 jobs in the first phase of a wider cost-cutting strategy.
AI redraws the office
In banking and insurance, automation is changing the math. Firms want to simplify processes and use AI for tasks traditionally handled by administrative and back-office staff.
British bank Standard Chartered plans to eliminate more than 7,000 corporate-function roles by 2030 as it expands automation and AI. The cuts apply to its global operations, not just Europe. UK-based Barclays has announced 5,000 job cuts worldwide as part of a restructuring. German insurer Allianz Partners will reduce its workforce by 1,800 as it expands its use of AI and automated systems.
Telecom cuts hit stores and offices
Telecom operators are trimming staff beyond administrative roles, with their physical retail networks also affected.
Late last year, Telefonica Spain finalized a large voluntary redundancy plan that produced at least 4,525 exits, with an estimated 5,500 departures in total. O2 Telefonica Germany plans to cut 1,100 jobs and close 60 stores. British group Vodafone has announced reductions affecting 1,200 jobs across its European operations, plus plans to eliminate 2,300 positions in Germany over the next two years.
Delivery and hospitality restructure
Food delivery, hospitality and catering businesses are also reorganizing, changing both staffing levels and how services are delivered.
Pyszne.pl, the Polish delivery platform operated under Just Eat Takeaway, will eliminate 5,000 positions and downsize to improve efficiency. British hospitality group Whitbread is cutting 3,800 jobs in the UK and Ireland to reduce costs. French catering and facilities management firm Sodexo plans to eliminate 1,100 positions.
The layoffs reach well beyond manufacturing, hitting transport, finance, telecommunications and hospitality. Some target European operations only, while others belong to multi-year global restructuring programs.
Pressures vary by sector. Industrial firms are reshaping output to match shifting demand, while banks and insurers are turning to artificial intelligence (AI) for work once done by administrative staff.
Automakers and suppliers take the hardest hit
The auto industry is absorbing the deepest cuts. Established manufacturers face high production costs, slower-than-expected electric vehicle (EV) adoption and growing competition from Chinese rivals. The central challenge is funding new technology while keeping current operations profitable.
Volkswagen plans to shed about 100,000 jobs worldwide by 2030, a figure that includes reductions announced earlier. Among suppliers, Bosch will cut more than 13,000 jobs to sharpen its competitiveness, and ZF Friedrichshafen plans to eliminate 14,000 positions. Schaeffler has announced 3,460 job cuts in Europe as profit margins come under strain. French carmaker Renault is trimming its global engineering workforce by 2,400 positions.
Heavy industry and energy retrench
Heavy industry and energy firms are also cutting staff as they restructure long-established operations and adapt to the move away from fossil fuels.
Thyssenkrupp plans to cut 11,000 jobs to streamline its business. In Romania, energy producer Complexul Energetic Oltenia is reducing headcount by 1,700 amid decarbonization and restructuring. Also in Romania, Damen Shipyards Mangalia plans to dismiss 1,011 employees after entering bankruptcy proceedings.
Transport and logistics feel the squeeze
Companies that move goods and passengers are shrinking too, citing rising operating costs and uncertainty over global trade.
Deutsche Bahn, Germany’s main rail operator, plans to cut 30,000 jobs to rein in costs. Swiss logistics group Kuehne+Nagel will eliminate 2,000 positions worldwide, citing excess capacity and geopolitical risks. Dutch airline KLM will cut 1,000 jobs in the first phase of a wider cost-cutting strategy.
AI redraws the office
In banking and insurance, automation is changing the math. Firms want to simplify processes and use AI for tasks traditionally handled by administrative and back-office staff.
British bank Standard Chartered plans to eliminate more than 7,000 corporate-function roles by 2030 as it expands automation and AI. The cuts apply to its global operations, not just Europe. UK-based Barclays has announced 5,000 job cuts worldwide as part of a restructuring. German insurer Allianz Partners will reduce its workforce by 1,800 as it expands its use of AI and automated systems.
Telecom cuts hit stores and offices
Telecom operators are trimming staff beyond administrative roles, with their physical retail networks also affected.
Late last year, Telefonica Spain finalized a large voluntary redundancy plan that produced at least 4,525 exits, with an estimated 5,500 departures in total. O2 Telefonica Germany plans to cut 1,100 jobs and close 60 stores. British group Vodafone has announced reductions affecting 1,200 jobs across its European operations, plus plans to eliminate 2,300 positions in Germany over the next two years.
Delivery and hospitality restructure
Food delivery, hospitality and catering businesses are also reorganizing, changing both staffing levels and how services are delivered.
Pyszne.pl, the Polish delivery platform operated under Just Eat Takeaway, will eliminate 5,000 positions and downsize to improve efficiency. British hospitality group Whitbread is cutting 3,800 jobs in the UK and Ireland to reduce costs. French catering and facilities management firm Sodexo plans to eliminate 1,100 positions.
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