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VW Brand to Cut Staff by at Least 5,000
Volkswagen AG says its VW brand is on track to eliminate 5,000-7,000 jobs by 2025 in a bid to hike the unit’s operating margin to 6% from 3.8% in 2018.
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Volkswagen AG says its VW brand is on track to eliminate 5,000-7,000 jobs by 2025 in a bid to hike the unit’s operating margin to 6% from 3.8% in 2018.
The reduction will come from early retirements and not replacing employees who leave. The brand hopes to lower its annual costs by €5.9 billion ($6.7 billion) by 2023.
Ralf Brandstaetter, the brand’s chief operating officer, says the plan is necessary to make VW “fit for the electric and digital era.”
The VW unit currently employs about 185,000 people, or 28% of the group total. The unit has eliminated more than 6,000 net positions—in spite of adding 2,700 new-tech jobs—since it signed a labor agreement in 2016 to eventually shed 30,000 jobs worldwide.
VW’s works council backs the voluntary reductions, paired with job guarantees for those who wish to remain, until at least 2025.
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