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Volkswagen will cut 5,000 jobs by 2023

German brand wants to reduce costs and focus on electrical production

Volkswagen announced that it plans to cut 5,000 jobs through voluntary measures such as partial and early retirements, in an effort to reduce costs and focus on electricity production.

According to the German newspaper « Handelsblatt ‘, cited by the financial information agency’ Bloomberg ‘, the agreement reached with the structures representing the workers could lead to a cut of 5,000 jobs and 500 million euros in restructuring expenses for the builder’s business activity.

Volkswagen had announced in December that it was going to negotiate with the unions to secure an agreement that, by lowering costs by 5% by 2023, allow the group to focus on electric vehicle production and software operations.

According to ‘Bloomberg’, the existing labor agreement prevents dismissals until the end of the decade.

“Due to the our high investments in expanding electric mobility and digitalization, Volkswagen was able to develop a pioneering role as a driver of change in the automotive sector “ , revealed the director of the human resources department, Gunnar Kilina, concluding that “this requires continuous control of the costs that guarantee the financing of the necessary investments in the future “ .

It is recalled that Volkswagen sold 5.3 million vehicles in 2020, minus 15.1% compared to the previous year, penalized by the fall in all markets due to the covid-19 pandemic, according to the figures announced in January by the German manufacturer.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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