Volkswagen has announced that it will cut 30 000 jobs over the new few years, in a bid to offset the spiralling costs of the emissions scandal, after coming to an agreement with labour unions.
With this move, the German brand hopes to save some €3,7-billion. “Up to 23 000” of the jobs would be lost in Germany, the brand said.
However, in its official statement, the automaker also pointed out that “compulsory redundancies” would be excluded up until the end of 2025, adding that the workforce would “be reduced in a socially compatible way”.
Therefore, the jobs would be shed through early retirement, as well as by not replacing workers who leave.
VW also said it hoped to create as many as 9 000 new jobs in “future-oriented” areas.
According to reports, the 30 000 lost jobs would account for around five percent of the Volkswagen brand’s global workforce.
“With the pact for the future, Volkswagen will be taking a major step forwards. The pact represents a fundamental transformation of the value stream, the development of new competences and strategic investment,” said Dr. Herbert Diess, chairman of the brand board of management.
“We will be strengthening the company’s economic viability and competitiveness and will be safeguarding the future of our plants. The socially compatible loss of jobs will be offset by the creation of jobs in other units,” Diess added.
Diess emphasised that Volkswagen would be concentrating on the future of the automotive industry.
“We will be transforming the entire brand and making it fit for the fundamental transformation of our industry. At Volkswagen, we are taking our future into our hands,” he said.
Bernd Osterloh, general works council chairman, called the agreement a “considerable success”.
“The most important news is that the workplaces of our permanent workforce will be safeguarded. We have agreed that compulsory redundancies are to be excluded up to the end of 2025. In view of what is happening at other companies, this is a considerable success in troubled times,” said Osterloh.
“Of course, the pact for the future has positive and negative aspects. However, it represents an acceptable compromise for both parties, reached after a long struggle. We have now achieved a reasonable result,” he added.
