most of The jobs, 23 thousand, will be lost in Germany, said directors of the company at a press conference at its headquarters in Wolfsburg. The measure will mean a saving of three thousand 700 million euros (four billion dollars) per year from 2020.
Volkswagen has agreed to pay $ 15 billion in a pact with u.s. authorities and owners of about 500 thousand cars, which included a software that distorted the results of the emissions controls. Some 11 million cars around the world are equipped with the problematic program.
The automaker explained that it seeks to reduce costs not essential and investment, and shifting their focus towards electric cars, and services such as car and ride sharing.
The general director of the company Matthias Müeller stated that “it is the most sweeping reform in the history of our main brand”. In addition to Volkswagen, the company manufactures other brands such as Porsche, Audi, SEAT, Skoda and Lamborghini.
The scandal of emissions led to the company to address old problems like the high costs of its facilities in Germany and a management excessively vertical that, according to the analysts, he created an environment that fostered that kind of traps.
Herbert Diess, director of the main brand Volkswagen, admitted that Volkswagen allowed a great increase in their costs and “has lost ground in terms of productivity.” The new reforms, he said, will make the company “more nimble and efficient”.
The cuts have the objective of addressing the old problem of the company of its excessive costs.
Volkswagen, with 624 thousand employees, sell on average the same number of vehicles Toyota and General Motors: about 10 million a year. But Toyota does it with just 349 thousand employees and GM with 202 thousand.
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