Billion-Dollar Automotive Giant Initiates Layoffs!

Volkswagen Initiates Layoff Negotiations; CEO States Brand No Longer Competitive

Reuters, November 28 - The management of Volkswagen has announced that the group's €10 billion ( $ 10.9 billion ) cost-cutting plan will involve layoffs. Meanwhile, Thomas Schaefer, the head of the Volkswagen brand, warns that high costs and low productivity are eroding the competitiveness of the Volkswagen brand.

Thomas Schafer pointed out that 2024 will be a challenging year for Volkswagen, as multiple markets face significant pressure, and electric vehicle orders are not meeting expectations. Schafer informed union representatives that without substantial cost reductions, there would not be enough capital to operate, based on past observations.

During a meeting on November 27, Gunnar Kilian, a member of the Volkswagen Group's Human Resources Management Committee, stated that the company would achieve layoffs through agreements for partial retirement or early retirement. However, Kilian added that a significant portion of the €10 billion cost-cutting target would be achieved through measures other than layoffs, with specific details to be determined by the end of this year.

In early November, the German business magazine reported, citing an internal podcast at Volkswagen, that the company plans to cut one-fifth of administrative staff as part of the cost-cutting plan. The German Manager Magazin reported that the Volkswagen Group plans to lay off 2,000 people in its CARIAD software department as part of its restructuring plan. The new software architecture will be further delayed, and the layoffs will continue from 2024 to the end of 2025.

2. Longxin Heavyweight Releases Next-Generation Processor

Longxin Zhongke's official WeChat account announced on November 28th that the 2023 Longxin Product Release and User Conference kicked off as scheduled at the National Convention Center. The conference, themed "Sailing Against the Current," unveiled the heavyweight achievements of the new generation general-purpose processor Longxin 3A6000 and the printer control chip Longxin 2P0500. Additionally, they publicly disclosed the Longxin processor core IP and the Longxin independent instruction system architecture authorization plan.

The Longxin 3A6000 processor, utilizing the Longxin independent instruction system LoongArch, marks the debut of Longxin's fourth-generation microarchitecture. With a clock speed of 2.5GHz, it integrates 4 state-of-the-art high-performance LA664 processor cores, supports simultaneous multi-threading technology (SMT2), and boasts a total of 8 logical cores on the chip. It includes an integrated secure and trusted module, offering secure boot solutions and supporting domestic cryptographic algorithms (SM2, SM3, SM4, etc.).

3. Report Alleges Broadcom Laid Off Multiple VMware Employees After Acquisition

According to Businessinsider's report on November 28th, Broadcom conducted layoffs of certain employees following its acquisition of VMware. Some VMware employees received an email on Monday stating that their positions would be terminated after Broadcom announced the completion of the acquisition of the company: "Broadcom recently completed the acquisition of VMware. As part of integration planning and following an assessment of organizational requirements, we have identified the staff needed for the merged company. We regret to inform you that your position will be terminated, and your employment relationship will be terminated as well."

Shortly after obtaining approvals from regulatory authorities in the United States, the United Kingdom, and China, the company completed the transaction on November 22nd this year. However, Broadcom will take on VMware's net debt of $8 billion (approximately 57.28 billion RMB). Currently, it is unclear how many employees will be affected by the layoffs. Broadcom did not immediately respond to requests for comment.