Volkswagen Plans to Cut 30K Jobs to Save Money

The Volkswagen brand plans to get rid of roughly 30,000 jobs by 2021 in a bid to save about $3.9 billion annually. 

According to Reuters citing sources close to the matter, Volkswagen will let all of the employees go through attrition, as the company has agreed to no forced layoffs until 2025.

This is a major step in Volkswagen’s plan to help it restructure after the massive diesel emissions scandal which cost the automaker at least 18 billion euros and its reputation. The cuts should help Volkswagen save $3.9 billion annually, helped by 23,000 jobs cut in Germany alone.

Volkswagen’s workers also got the brand to agree to build two of its upcoming electric vehicles in Germany. Thanks to this, VW does plan to hire on 9,000 new employees for electric vehicle projects and to focus on future technology. In total, VW will spend about 3 billion euros at these German plants while another 700 million will be spent abroad.

The official announcement of Volkswagen’s “future pact” with its employees will be announced Friday morning.

[Source: Reuters]

This story first appeared  on autoguide.com