Volkswagen announces up to 7,000 work cuts | News | DW

On Wednesday, German car manufacturer Volkswagen announced that it plans to cut 5,000 to 7,000 jobs by 2023 to reduce operating costs by EUR 5.9 billion.

Volkswagen, Europe's largest automaker, has been on fire since the diesel gate emissions scandal broke in 2015. The company is expected to invest 19 billion euros over the next five years in the development of cleaner electric vehicles and electromobility technology.

Most work processes are expected to be completed through pension offers. It is estimated that 11,000 Volkswagen employees will receive pension in 2019. At the same time, the company plans to add 2000 jobs in research and development.

Read more: VW reports $ 12 billion surplus and plans 22 million electric cars in 1[ads1]0 years

Ralf Brandstätter, Volkswagen's chief operating officer, said the company needed to "do more to meet the challenges" The company is facing in the coming years, adding that the changes would make the Volkswagen "fit for the electrical and digital age."

Make Volkswagen more "smooth"

In December 2018, Brandstätter Volkswagen said "force the change rate and become more efficient and supple."

Volkswagen reported revenue of € 235.8 billion in 2018, at a net profit of € 12.15 billion.

Arno Antlitz, CFO of Volkswagen, said the measures are expected to increase profits by 6 percent by 2022.

According to a press release, the company has already implemented a "digital road map" that automates administration and IT systems

wmr / sms (Reuters, AFP, dpa)

Every day, DW's editors send out a selection of today's hard news and quality function journalism. Sign up for the newsletter here.