November 29, 2025 – On November 27 local time, MAN, a commercial vehicle manufacturing subsidiary under Germany’s Volkswagen Group, announced that amid the ongoing struggles in the German automotive sector, it would cut 2,300 jobs in Germany to reduce operational costs.
MAN, which mainly produces trucks, buses, and diesel engines, stated that it is under significant pressure due to high electricity and labor costs, as well as intense competition from Asian rivals. By 2030, the company plans to reduce its workforce by 2,300, accounting for approximately 20% of its German employees. However, instead of implementing forced layoffs, MAN will encourage voluntary measures such as early retirement.
It is worth noting that Volkswagen Group had previously announced plans to cut 35,000 jobs in Germany by 2030, with around 20,000 employees having already signed voluntary departure agreements.
The German automotive industry is currently facing multiple challenges, including soaring labor costs (the average labor cost for producing a new car in Germany is as high as $3,300, nearly six times that in China), weak market demand, and fierce competition from Chinese competitors.
