Auto Business News
March 14, 2019
The job cuts are intended to increase the brands bottom line. The automaker stated that the step will help ensure profitability as the company transitions to the electric and autonomous vehicle era.
The company said that it can get close to its targeted 7,000 job cuts by offering early retirement and simply not re-staffing vacant positions. Only if the goal is not reached by these measures will the company start compulsory layoffs in 2025. The cuts are intended to increase the brands profit margins to 6%, up from 3.8% last year. VW estimates the cuts, along with other measures, will allow for annual savings of $6.7 billion by 2023.
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