Kathmandu. German auto giant Volkswagen said on Tuesday it plans to cut 50,000 jobs in Germany by 2030.

“By 2030, there will be a total of 50,000 jobs cut within the Volkswagen Group in Germany,” the head of Volkswagen said. It had previously agreed to cut 35,000 jobs by the end of 2024. Now the reduction will be in the top brands and software companies. ”

The company said the decision was made in the face of challenges such as stiff competition in China, stable demand in Europe and high investment costs in electric vehicles. Volkswagen has long been a market leader in China, but local competitors have put pressure on the company’s sales.

“Local companies are trying to increase price competition by entering the European market,” the chief added at a press conference. It will increase the pressure on us. We need to make a more intense effort to reduce costs. ”

Experts have seen Volkswagen’s move as a strategy to ensure the company’s sustainable operations while maintaining cheap and stable production costs. This decision is expected to have a major impact on employees, organizations and the market. The company plans to save a lot of money every year from this reduction.