VW to cut 30,000 jobs

Volkswagen has announced plans to cut 30,000 jobs by 2020. The German car manufacturer is planning to reduce costs and prioritise investment in electric vehicles following the diesel emissions scandal. Analyst at JPMorgan, José Asumendi, estimated the job cuts would result in savings of €1.5bn to €2bn for the company. “This figure is still below the €3.7bn cost savings figure the company wants to tackle,” he said, adding further savings may come from cutting losses in the Americas and reducing other overheads. VW will reduce its workforce by five per cent, however the employment numbers will be reduced by not re-filling vacancies, rather than dishing out compulsory redundancies. The European car maker employs more than 600,000 employees worldwide. Herbert Diess, head of the VW brand, said the deal involved “restructuring the entire brand to prepare it for the fundamental changes in the car industry”. VW plans to begin increasing work on electric cars in Germany, with plans, by 2025, for one-quarter of its vehicles to be powered by batteries. VW has also announced plans to invest €3.5bn in new technologies and its German plants, and hire 9,000 workers for areas such as software, many will be employed from inside the business.