Volkswagen to cut 30,000 jobs

Published:  21 November, 2016

The automotive manufacturer announced it plans to cut 30,000 jobs worldwide, of which 23,000 in Germany, as it paves the way to “the biggest modernisation programme in the history of the group's core brand".

According to Volkswagen, the job cuts will bring an estimated annual savings of €3.7 billion by 2020. However, the new restructuring strategy is to create around 9,000 jobs as part of investments in new products.

VW employs around 610,000 people in 31 different countries, of which 120,000 workers in Germany. By improving productivity at its German plants by 25%, it hopes to increase the brand's profit margin from 2% to 4%.

Source: BBC