EMCC European Monitoring Centre on Change

Volkswagen

Company/Organisation:
Volkswagen

Geographic Location

Country: Germany

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 120000

Employment Effects

Announcement Date: 10-03-2016
Planned Job Reductions min: 3000
Planned Job Reductions max: 3000
Type of Restructuring: Internal restructuring
Employment Effect Start: 10-03-2016

Additional Information

Volkswagen (VW), Europe’s largest producer of cars, will probably cut about 3,000 jobs in Western Germany by the end of 2017. Job cuts are due to the losses of the emissions test-rigging scandal. However, the company has yet to confirm these reports. As a result of the scandal Volkswagen will reduce investments of over €1 billion. Mostly affected are office jobs, especially temporary workers. According to the British hedge funds TCI, Volkswagen can save up to €3 billions through natural fluctuation. Thereby, the company can avoid compulsory redundancies. The financial director announced to present the new business strategy 2025 before the summer. The strategy will include inter alia new rules for salaries of top managers.

Volkswagen, headquartered in Wolfsburg, currently employs 120,000 workers in Western Germany and 610,000 worldwide. For latest restructuring at VW in Germany see January 2016.