Volkswagen cut 30 thousand jobs, of which 23 thousand-in Germany – The Sun 24 Hours

Volkswagen will cut 30 thousand jobs by 2020. This is the care from the horse prepared by the chief executive officer Matthias Mueller to overcome the crisis of the dieselgate and make it more competitive with the Volkswagen brand. The details of the plan, it is anticipated by the daily Handelsblatt, were announced today by the same Mueller and Herbert Diess, the number one brand of Vw, in a press conference from Wolfsburg, and will be approved today, the scheduled meeting of the supervisory board.

Volkswagen prepares 30 thousand cuts

The staff reduction will affect especially the German sites of the group, where he works almost half of the over 600 thousand employees are planned in Germany 23 cuts on the total of 30 thousand. The so-called "future Plan" agreed with the trade unions, points to a reduction in cost of 3.7 billion a year by 2020 (of which 3 billion in Germany) and expects to invest $ 3.5 billion in the restructuring of the German sites. The headcount reductions will take place, – said Diess – without the redundancies, but early retirement, transition to part-time of senior employees and non-renewal of fixed-term contracts. Volkswagen has pledged not to make redundancies in Germany until 2025, or until the end of the strategic plan presented by Mueller in the past few months. There are reductions in the workforce in north America, where it became the dieselgate over a year ago, in Brazil, where the car market is in deep crisis and where the brand Vw has been among the har dest hit (and also in Argentina).

Volkswagen to cut 30.000 jobs

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hand In hand with the cuts, are provided for significant investment in the transformation of the group that focuses on car electrical and digital; these investments will lead to the creation of 9 thousand new jobs. In the tradition of the German Volkswagen, the plan has been agreed with the trade unions (that have ten seats out of twenty in the supervisory board) and has been the subject of fierce negotiations between Diess, and Bernd Osterloh, the powerful head of the works council, which has participated at the press conference alongside the manager. "The restructuring plan is the most important in the history of the brand Volkswagen," said Mueller, who added that "the real work starts now and the implementation of the plan will not be easy."

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"A bitter pill" has defined the plan, Stephan Weil, president of Lower Saxony, referring to the cuts in Germany, which will affect especially the 6 plants in the Land of Wolfsburg. A pill sweetened with the confirmation of Wolfsburg as a strategic site and a hub for investments in electric cars and in the digitisation of the car. The challenge of the future of the car is the key point but also the most question mark on the implementation of the plan. "The car market is on the cusp of a profound transformation – said Diess -. Everyone will have to restructure, but we do it in advance". In reality, Vw has launched on the road of the electric car after a number of competitors, and the success of the cars to the batteries is still far from assured. "We need the support of the policy," he said in this regard Osterloh.

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