Volkswagen launches plan to cut jobs

Committed like the entire automotive sector in electromobility, Volkswagen wants to reduce its costs. The German manufacturer has announced a plan to cut jobs.

A job-cutting plan to better manage electromobility: this is the explanation given by Volkswagen management to justify this new job-cutting plan. In 2019, the company had already cut 7,000 jobs; this time, no figure is given, except that 900 employees will be able to opt for a formula of early retirement in the short term. But observers expect an additional 2,000 to 4,000 posts to be cut. Volkswagen has negotiated with the works council a complete set of measures to regulate the age of its payroll, departures which will contribute ” importantly “To rigorous cost management, according to the press release.

Full ahead for electromobility

After the “dieselgate” scandal, Volkswagen wanted to move quickly on to something else and fundamentally change its image. The group has therefore embarked on a forced transition towards electromobility and digitization, for which it has invested heavily. ” Volkswagen was able to establish itself as a pioneer of automotive change », Assures the company. But to remain a leader in this sector and strengthen its positions, the group must continue “ strict cost management in order to finance the necessary investments in the future “.

Rigorous cost management

The plan to cut jobs is “ The right answer », According to management. Volkswagen, like all car manufacturers, had a bad year 2020 marked, of course, by the health crisis. The company thus sold 9.3 million vehicles, or 15% less than the previous year. This positions the company in second place in the world market, behind Toyota. Despite the persistence of the epidemic at the start of the year, particularly in Europe, Volkswagen is forecasting a rebound in sales in 2021.