VW to Cut 30,000 Jobs in Restructuring

By Christian Stampfer on 18 November 2016
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DSC_0193MUNICH—Embattled automaker Volkswagen said Friday it would cut 5% of its global workforce, totalling 30,000 jobs as it tries to recover from the Dieselgate scandal.

The workforce reduction, which will take place over the coming three years, will hit the company’s home market, Germany, harder than in other regions with cuts of some 23,000 employees. In a statement, VW said that union leaders had already agreed to the cuts and it plans to offer early retirement plans and voluntary redundancies in addition to not replacing some positions when they become vacant.

Volkswagen said it expects to boost profits by €3.7 billion ($3.9 billion) starting in 2020 and that the changes will boost productivity by some 25% at its plants in Germany.

The Wolfsburg-based automaker faces massive fines and penalties as a result of the Dieselgate emissions cheating scandal. The restructuring will allow it to invest €3.5 billion in developing electric cars and other projects, thereby creating 9,000 new jobs in Germany.

(Photo: Accura Media Group)