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Volkswagen to cut 5,000 to 7,000 jobs by 2023, mainly in Germany



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Volkswagen announced in a press release yesterday (13 February) that it estimates to cut between 5,000 and 7,000 jobs by 2023, in a focused move towards digital transformation.

Human Resources reached out to the company regarding any jobs affected in Asia, to which a spokesperson has clarified these cuts will take place mainly in Germany, and is planned to offer older employees early retirement. They will also take place due to the automation of routine tasks.

With regard to all measures, Volkswagen has given its workforce a job security guarantee until at least 2025, the press release stated.

As for whether the company will provide outplacement support, the spokesperson said: “There is no outplacement. The given job security is still valid because it is only planned to offer employees an early retirement – if the Works Council agrees.

“If so, the employees can decide by themselves to  accept or not. If not, nothing will change for the employee.”

These cuts come as part of Volkswagen’s restructuring efforts, and will include about 2,000 new jobs being created in technical development, relating to electronics architecture and software.

Clarifying the purpose of these new jobs, the spokesperson said: “There is a need of engineers for technical development in connection with e-mobility, digitalisation and autonomous driving worldwide.

“Especially in China the R&D departments will get stronger.”

At the same time, the company will implement a digitalisation roadmap designed to prepare employees for the digital world of work, and will be investing €4.6 billion in IT systems to digitise administrative processes.

Photo / Volkswagen’s press room

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