VW to cut 3000 jobs in Germany

Volkswagen sources say the European carmaker plans to cut 3000 office jobs in Germany by the end of 2017.

VW sign of Germany's car company Volkswagen

Sources say Volkswagen plans to cut about 3000 office jobs in Germany by the end of 2017. (AAP)

Volkswagen plans to cut about 3000 office jobs in Germany by the end of 2017 as the carmaker strives to offset the cost of its emissions test-rigging scandal, two sources at the company say.

Europe's largest carmaker is cutting investment by one billion euros ($A1.5 billion) in 2016 compared with last year and aims to shed hundreds of temporary jobs and cease unprofitable models in a bid to reduce costs in the wake of the scandal.

VW employs about 120,000 workers at its west German plants and its financial services division, with about a third of those being office positions.

The sources did not give more specific information about the job losses.

"The Volkswagen brand has initiated an efficiency program that is affecting all areas, including personnel costs," a VW spokesman said.

Costs can be cut by reducing temporary work contracts, filling vacancies internally and making fewer hirings, the spokesman added, declining to be more specific.


Share

1 min read

Published

Updated

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world