In order to save an estimated 3.7 billion euros (RM17.4 billion), the Volkswagen Group has announced that it will cut 30,000 jobs from its workforce globally. Of that sum, 3.5 billion euros (RM16.4 billion) will be invested into the development of electric, connected and autonomous vehicles, in the hope that the latest efforts will turn the group around following the long-running Dieselgate saga, according to a Reuters report.
Of the 30,000 jobs to be cut from its core brand, 23,000 will be from Germany, though VW points out that none of these come through compulsory redundancies. Instead, it says that the “socially compatible loss of jobs” will take place via “natural fluctuation and partial early retirement.” On the flipside, 9,000 new jobs have been pledged in battery production and mobility services to cater to the new direction towards electrification.
“We have to invest billions of euros in new cars and services while new rivals will attack us; the transformation will surely be more radical than everything we have experienced to date,” said VW brand CEO Herbert Diess. The job cuts make up approximately 5% of VW’s 610,000 employee total, or 19% in Germany, where 120,000 work for the automaker.
The automaker aims to raise operating profit from 2% to 4%; other European carmakers Renault and Peugeot Citroen target an operating margin of 6% by 2021. VW’s electric cars will be built at its German factories in Zwickau and Wolfsburg, while electric motors will be made in Kassel and battery cell production/development will take place in Salzgitter. Meanwhile, battery packs for EVs and hybrids will be built in Braunschweig, VW said.
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Wonder how much will be save if our gomen axe all the redundant position and retire non productive gomen servant……..
Old news ….
0.
Government servants is being paid until they pass away.
Nope. The wife of the late will still get husband penchant until she also passes away.
It is never a good/popular thing to do to cut jobs when you want to cut cost. It must be painful for VW brand CEO Herbert Diess to announce the bad news.
Nevertheless, he is brave enough & pragmatic to do it. How I wish our Gov/PM can do the same ie to cut its massive Gov servants that stand at more than 1.5 million staffs.
Yeah right. He cut just 6000 jobs from MAS, and u pipu alredi harangue him from being heartless and cruel.
j, know the difference between job cuts & retrenchment or deployment B4 you shoot from your hip.
Hilang keje?! Ini mesti semua salah P1BNNaj… oh wai
i have learned my lesson. The vw car is cool, yes it is fast and visually appealing (mine rocco). But after 5 years, even the headliner fall down completely and it cost me RM2800 to replace it from the authorize distributor (which i would not sent it to them). Not to mention replacing the mechatronic, radiator and also the inter cooler as well+ common DV issues, ignition coil. But the headliner issue its really make me upset. however, the decision is all goes to the public..so many new car offers in current market, event vw bring in the new passat, face lifted golf is coming next year. just make sure do more reading before make any decision unless none of the issues above bothering you. :)