Volkswagen to cut 30,000 jobs by 2020
Volkswagen has announced it will cut a staggering 30,000 jobs in the wake of #dieselgate.
VOLKSWAGEN AND ITS labor unions have agreed to slash 30,000 jobs (VW has 610,000 employees worldwide) by 2020 to help bolster the companies flagging profits and avoid forced redundancies. Volkwagen’s emissions cheating scandal in the US has cost the company billions of dollars in fines around the world.
That said, Volkswagen in the same announcement also said it would create 9000 new jobs in its battery and mobility services factories in Germany as the brand moves towards an electric future. It’s believed the bulk of job cuts will come in Germany, but will also hit the US as the brand contracts there after #dieselgate.
“We have to invest billions of euros in new cars and services while new rivals will attack us – the transformation will surely be more radical than everything we have experienced to date,” VW brand CEO Herbert Diess said at a press conference.
Volkswagen and its labor unions developed what’s being called the ‘future pact’ as a way of improving the car maker’s profitability; it involves significant cuts to costs and potentially a cutting of poor performing units.
“The VW brand needs a real shake-up and that is exactly what the future pact has turned out to be,” the CEO said at a press conference at the carmaker’s headquarters yesterday.
“Everyone at the VW brand has understood what is at stake: to create a strong, future-proof VW,” Mueller said. The future pact “is the biggest modernization program in the history of the group’s core brand.”