Plus   Neg

Volkswagen AG Plans 4000 Job Cuts As Part Of 4 Bln-Euro Digitization

volkswagen jobcut 050619 lt

Volkswagen AG said it plans to shed around 4000 jobs in non-production units as part of 4 billion-euro investment in digitization. It aims to achieving operating return on sales of six percent by 2022, three years earlier than expected.

The automobile giant is planning not to restaff Volkswagen AG Passenger Cars, Volkswagen Group components as well as Volkswagen Sachsen GmbH in the next four years. It also intends to add at least 2000 new jobs for the digital transformation road map through 2023.

The company will offer partial retirements to employees in non-production units born between 1962 and 1964. Management staff could avail outplacement options.

Volkswagen said it will increase training budget to 150 million euros by adding 60 million euros. It expects to fund the transformation from its own resources and cost reductions. Additionally, the company plans to set up an online university and strengthen online training platforms.

Commenting on digitization, Ralf Brandstätter, Chief Operating Officer of the Volkswagen brand said, "We are laying the sustainable foundation for making the company fit for the digital era. We are accumulating new digital expertise, and making all areas of our organization faster, leaner and more competitive."

Currently, the company' aims to achieve productivity gains of five percent per year to remain competitive.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT