German based leading car manufacturer Volkswagen Group (ETR: VOW3) says that its contemplating cutting down its labor force by 30,000 jobs as it thinks this move will place it at a much better position to better compete with other players in the industry like United States based electric vehicle manufacturer Tesla Inc. (TSLA).
This announcement was first made by the company’s chief executive officer, Herbert Diess, in a presentation he made to supervisory board. Later in a press statement, the spokesperson of the company, Michael Manske, confirmed the debate on the issue is on the table.
“There is no question that we have to address the competitiveness of our plant in Wolfsburg in view of new market entrants. The debate is now underway and there are already many good ideas. There are no concrete scenarios,” said Manske.
In other news, the company’s chief technology officer, Thomas Schmall, revealed that Volkswagen is listing its car charging and energy business in addition to the existing initial public offering plans for its battery unit.