Latest to join the force of carmakers laying off employees amid a sales slowdown in the industry is PSA Group's German car-making division Opel.
As per the report, it plans to around 4,100 jobs, which is 14 percent of the Opel's workforce of roughly 30,000 employees.
First the carmaker will eliminate at least 2,100 positions by 2025 and then later could take measures to slash another 1,000 workers twice in two-year increments through 2029.
Carmakers across the globe are planning to eliminate more than 80,000 jobs during the coming years, according to data Bloomberg News compiled in December. Opel has also joined them, largely affected by the new stricter emission standards many German brands have been struggling to prove they're ready to meet.
For German carmakers it could be taxing to make the transition as plug-in cars require fewer parts and less labor to build. The new standards, the new demands from the consumer, and the rapidly developing market for electric vehicles, among others, are challenging both the business and the talent strategies of companies in the automotive sector. It is uncertain how far Opel's strategy to cut jobs will prove to be beneficial. Besides restructuring, Opel would also need to prepare its existing workforce for the disruptions ahead. The leaders at the German carmaker have to identify the core skill sets they need to be able to face the new wave of change and nurture their talent accordingly.