Volkswagen will cut about 30,000 jobs as a restructuring move and a way to cut costs as a result of the diesel emissions scandal.
During a news conference in Germany, the automaker announced the cuts as a way to save about 3.7 billion euros or about $3.9 billion in expenses, Automotive News reported.
The emissions scandal involved some of the TDIs being equipped with software that detects when the vehicle is being tested and then changes its performance to produce better emission results. Volkswagen came to an agreement in October with about 650 dealers that were impacted by the scandal.
About 5 percent of the cuts will come through attrition. Volkswagen said it will refrain from forced layoffs until 2025.
The cuts resulted from months of talks with labor and management. The agreement balances cost cutting with investment with the auto industry shifting away from tradition engines to ride sharing services and self driving technologies, Automotive News reported.
“This is a big step forward, maybe the biggest in the company’s history,” VW brand chief Herbert Diess said at a news conference in Wolfsburg. “All manufacturers must rebuild themselves because of the imminent changes for the industry. We need to brace for the storm.”
About 23,000 of the jobs will be cut in Germany with the remainder eliminated in North America, Brazil and Argentina.
Check out this related TFLcar video of the 2018 VW Atlas, one of the cars the company hopes will help resurrect the brand: