this post was submitted on 10 Dec 2024
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Volkswagen: “We’re making €18 billion this year, so naturally, it’s time to slash jobs and squeeze the people actually keeping the company running.”
Meanwhile, the execs are over here stacking 15-25% raises every year like it’s Monopoly money. But sure, cutting worker salaries by 10% will totally boost morale. Nothing says “we value you” like a kick in the wallet.
Sounds like my previous company.
And they asked my why I quit.
Man, this is the same story every time. Companies rake in bigger profits, then lay off workers like they’re the problem.
People who gave them years of work get dumped into poverty or instability, and the execs act like it’s just business.
Meanwhile, you know they’re gonna be knocking on the government’s door for some bailout money. Absolute joke.
C-suite execs and board members should be required to work a couple weeks a year filing in for several of their lowest-paid workers. Maybe even staying with them so they see how their workers are forced to live.
If that happens, they'll probably just restructure it so that they're the only members of the company, and everyone else under them is part of a new company wholly owned and operated by the original company.
Wait what I thought VAG was unprofitable and has been for a while?
Not unprofitable.
They just set impossible profit expectations and doing everything to reach them to keep shareholders happy.
So even if they are making record profits, they're still not meeting the expectations they set. And that's bad for investors.
I checked and they have over 200 billion in debt. The debt has been steadily growing since 2008 so no wonder someone wants see results. If they stop innovating and taking debt they most likely die so it’s not a good situation to be in.
Based on their Q3 2024 Financial Report (p. 23):
So ya, they are plenty profitable. The line just isn't going up this year. Time to cut jobs.
https://companiesmarketcap.com/volkswagen/total-debt/
Sales slowing and “Total debt on the balance sheet as of September 2024 : $219.94 Billion USD”
I don’t think the point of negative profit isn’t too far with these numbers, especially if sales keep going down. They keep taking on more debt than they make profit for many years.
What are you talking about? Over the last 10 years, there was only one year when they weren't profitable (2015, 1.58 billion euros loss after they had to defer more then 16 billion euros because of their diesel shenanigans), every other year they were making billions. In fact, only in '16 and '20 were they "only" in the single digit billions, the remaining 7 years they made 10+ billions in profit, with the most recent year '23 being a record year in both, revenue (322 billion euros) and profit (16 billion euros).
Their debt is being paid and then some. This is not an issue.