Volkswagen to Cut 23,000 Jobs

By Douglas A. McIntyre Updated Jan 12, 5:40PM EST · Published Nov 18, 4:34AM EST

Volkswagen to Cut 23,000 Jobs — © Volkswagen AG

Google Translation of Volkswagen statement:

The Board of Management and the General Works Council of Volkswagen signed a future pact in Wolfsburg after constructive negotiations. He is leading the return of the Volkswagen brand to a profitable growth path. The program for the German locations with around 120,000 employees is intended to significantly improve the competitiveness of the Volkswagen brand and make the company future-proof. It creates the prerequisites for the transition from a pure automobile manufacturer to a successful mobility provider in the age of digitization and increasing electromobility. The focus is on a reorientation across the entire value chain. As early as 2020, the Volkswagen brand wants to be completely relaunched. Operational terminations are excluded. The reduction of jobs is socially acceptable. At the same time, new jobs are being built in the future. In concrete terms, the future pact is expected to lead to a positive earnings effect of € 3.7 billion annually by the year 2020; Of which EUR 3.0 billion is attributable to the German sites. The planned investments in future projects in the coming years amount to around 3.5 billion euros. This involves a staff structure of 9,000 positions. In Germany, this represents a socially acceptable reduction of up to 23,000 jobs in conventional areas.

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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

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