EMCC European Monitoring Centre on Change

Volkswagen

Company/Organisation:
Volkswagen

Geographic Location

Country: World
Location of affected unit(s): Germany, Argentina, Brazil, North America

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 610000

Employment Effects

Announcement Date: 18-11-2016
Planned Job Reductions min: 30000
Planned Job Reductions max: 30000
Type of Restructuring: Internal restructuring
Employment Effect Start: 18-11-2016
Direct Dismissals: 30000

Additional Information

On Friday 18 of November, at a press conference in Wolfsburg, Volkswagen announced a cut of 30000 jobs.

Jobs will be cut in Germany (up to 23,000) but also in North America, Brazil, and Argentina. The cuts are part of the restructuring design of the brand and staff reduction is planned through partial and early retirement and reduction of part-time staff.

Volkswagen is the Europe’s largest automaker and has recently struggled with low profits. The restructuring will help the company to recover from the diesel emissions scandal.

The company intends to invest into the development of electric and self driving cars; the management pledge is to create 9000 new jobs in the area of electric cars, mainly at factories in Germany.