The job cuts will be part of a savings drive aimed at slashing costs by 5.9 billion euros per year by 2023 at VW's own-brand division.said it would eliminate up to 7 000 jobs by 2023 as it seeks to accelerate its transition to electric vehicles, although the cuts should be achieved via retirement offers.
It estimates that the automation of routine tasks will result in the loss of between 5 000 and 7 000 jobs by 2023 and that around 11 000 workers will be eligible for retirement in the coming years. Meanwhile, the Wolfsburg-based firm said it would increase investments in “future topics” like battery-powered cars and automated driving over the same period, from the 11 billion euros announced in November to some 19 billion.
Chief operating officer of the VW brand Ralf Brandstaetter said in a statement the changes would “make Volkswagen fit for the electric and digital era”.