Volkswagen to slash 30,000 jobs by 2020 in bid to cut costs as it also reveals plans for electric car investment
Volkswagen is reportedly preparing to unveil restructure plans today that will include up to 30,000 job cuts.
The German car maker is overhauling its business in a bid to boost profitability, and will reduce its workforce significantly by 2020. The group said it would make no compulsory redundancies.
Of that total, 23,000 roles will be reduced in Germany, as the group seeks to save up to €3.7bn (£3.2bn). The remaining jobs will be axed outside of Germany, mainly in North and South America.
The embattled firm is trying to reduce costs as it struggles to pay for the fallout from the emissions scandal that rocked the company last year.
The group was hit hard by the revelation that it had cheated on emissions tests of its vehicles – it resulted in the departure of chief executive Martin Winterkorn, the recalling of 800,000 vehicles, and a decimated share price.
Former VW boss Winterkorn's statement after the emissions scandal broke (Source: VW)
Meanwhile, the company said it would switch focus to electric cars. VW is planning to build an electric sports utility vehicle and a smaller vehicle, known as the ID, at two of its plants in Germany.
The firm said today it would invest €3.5bn in its plans for "electromobility", which it added would help to create 9,000 jobs.