Volkswagen cuts 7 thousand employees.

Volkswagen cuts 7 thousand employees.

March 13, 2019 0 By autotimesnews

Within five years, the Volkswagen Group intends to reduce from 5 thousand to 7 thousand jobs in the framework of its main brand VW Passenger Cars. As noted in the report of the manufacturer, this will happen by automating routine processes, and the goal is to achieve a profit increase of 5.9 billion euros per year by 2023. And we are talking about a fair reduction, which does not take into account the retirement of employees upon reaching a certain age.

Even supergiants have to save! Currently, VW is investing a lot of money in modern IT systems, which will then enable management to save money by cutting jobs. In addition, Volkswagen is going to shrink the lineup and reduce material costs.

In previous austerity programs, VW has already achieved significant results, said Ralf Branddstetter, chief operating officer of the Volkswagen brand. But much more needs to be done to cope with the problems that will arise after 2020. What are the problems, the top manager did not specify.

In the fall of 2016, the company has already started a global employee reduction program, and it will be operational until the end of 2020. The program provides for the reduction of 30 thousand jobs worldwide, 23 thousand of them in Germany itself.

In turn, 9 thousand new jobs will appear in innovative areas, such as software development, but these will be jobs in specialties that were not previously in the staff list.

The optimization program should provide an increase in profits of 3.7 billion euros from 2020 and significantly improve production efficiency.

Saved funds chapter VW Herbert Diss wants to invest in the development and production of electric vehicles and autonomous vehicles. Recall Volkswagen had to incur large expenses, paying compensation and fines in connection with diesel gate. In addition, after the scandal, the automaker was forced to significantly reduce the model range, since diesel modifications did not meet strict environmental requirements, which were avoided before the scandal.