Volkswagen plans 30,000 job cuts worldwide
Volkswagen says it will create 9,000 jobs as part of investments in new products. The cuts should bring annual savings of €3.7bn ($3.92bn) by 2020. The company and unions have been hammering out a plan to revive its fortunes since June.
Volkswagen CEO Matthias Mueller said it was "the biggest modernisation programme in the history of the group's core brand. The VW brand needs a real shake-up and that is exactly what the future pact has turned out to be," he added.
Volkswagen employs 610,000 people in 31 countries and wants to increase the brand's profit margin from 2% to 4% and to do this it will need to improve productivity at its German plants by 25%. It has 120,000 workers in Germany. ■