VW to cut 30,000 jobs amid restructuring

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Europe’s largest carmaker, Volkswagen, is aiming to cut tens of thousands of jobs amid a drive to shape its post-Dieselgate future, media reports have said. A board meeting is to decide on future investments.

Germany’s business daily “Handelsblatt” reported Friday that automaker Volkswagen was planning to slash 30,000 jobs at its core VW brand globally to prepare the Wolfsburg-based company for a better future after its massive emissions-cheating scandal.

The report said their would be no compulsory redundancies, but jobs that would break away as the carmaker focused more on e-mobility and less on combustion-engine technology would not be replaced. German sites would be especially affected by the cuts, with roughly 23,000 positions to go by 2021.

The “Handelsblatt” said the job cuts were part of a deal between the works council and management linking a leaner workforce with pledges to invest in future technology.

All in all, Volkswagen is hoping to save up to 3.7 billion euros ($3.9 billion) annually as a result of large-scale restructuring.

Pivotal investments

The company is scheduled to present a detailed plan on the restructuring to the supervisory board later on Friday.

The board members will also convene to debate major investments in key technologies and pants over the next 5 years. Reports speak of an overall investment volume of 100 billion euros for this period.

Volkswagen has been struggling to leave its pollution scandal behind and usher in a new era focused on electric cars. The company isstill facing major fines from regulators, with the US Department of Justice alone seeking to get up to $14 billion from the carmaker for its large-scale rigging of emissions tests in the US.

hg/sgb (Reuters, dpa)

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