Volkswagen to cut 30,000 jobs

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Source : Salkamoney.com

Volkswagen, lacking profit even before the scandal of diesel engines revealed a year ago, plans to increase its productivity by 25% in its German factories.

Hard time for the German automotive industry. The CEO of German manufacturer Volkswagen, weakened by the scandal of the fraud polluting emissions, announced this Friday the abolition of about 30,000 jobs in the world. “The Volkswagen brand is not making enough money,” said its boss Herbert Diess at a press conference at the company’s headquarters in Wolfsburg.

The manufacturer will remove 14% of the 215,000 jobs it counts in the world. The German sites will be the most concerned, with 23,000 deletions of posts expected. Outside Germany, the brand evokes Brazil and Argentina, two currently difficult markets.
As already known, job cuts in Germany, which have been the subject of tough negotiations with staff representatives for months, will take place without any redundancies, but rather through measures such as early retirement.

Volkswagen wants to increase its productivity by 25% in its German factories.
The manufacturer aims to save 3.7 billion euros per year by 2020 and wants to see its margin, measure of its profitability, climb to 4% by then.

The Volkswagen group, which was hit hard by the diesel affair in 2015, announced a new strategy in June, through the marketing of more than 30 all-electric vehicles by 2025.

Lisa BERDAH, IEJ 3E

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