Share

Volkswagen announces 5 000 job cuts

accreditation
0:00
play article
Subscribers can listen to this article
A Volkswagen dealership. (iStock)
A Volkswagen dealership. (iStock)
  • Volkswagen will shed up to 5 000 jobs between now and the end of 2023 as part of cost-cutting to finance its transition to electric vehicles.
  • This latest round of jobs cuts follows the 2019 announcement of up to 7 000 job losses by the group's leading brand, VW.
  • In 2020, Volkswagen lost its top ranking in the world automobile market to Toyota, selling 9.3 million vehicles, down 15% on 2019.


Carmaker Volkswagen will shed up to 5 000 jobs between now and the end of 2023 as part of cost-cutting to finance its transition to electric vehicles, the company said in a statement on Sunday.

Up to 900 employees would opt for an early retirement scheme while others would leave the company as part of a gradual halting of their activities, it said.

It did not give a precise figure for those employees, saying only that it would be in the lower end of a "four-digit number", an expression usually used to mean between 2 000 to 4 000.

The job losses were intended to make a major contribution to managing the company's costs, said the statement.

"Thanks to our high level of investment in the expansion of electromobility and digitisation, Volkswagen has been able to establish itself as a pioneer of automotive change," human resources director Gunnar Killian said in the statement.

"We now want to consolidate our position of strength," he added.

"This will require a continuation of a strict cost management in order to finance the necessary investments in the future."

In 2020, Volkswagen lost its top ranking in the world automobile market to Toyota, selling 9.3 million vehicles, down 15% on 2019.

Like all car makers, it has been hit hard by the economic fallout from the coronavirus pandemic but has said it expects a significant rise in turnover in 2021.

This latest round of jobs cuts follows the 2019 announcement of up to 7 000 job losses by the group's leading brand, VW.

Earlier this month, Volkswagen said it hoped electric vehicles would account for 70% of its European sales by 2030, doubling its previous target in the face of ever stricter legislation.

The efforts are part of a strategy which has seen the Volkswagen group invest more than €30 billion into e-mobility in order to comply with stricter environmental rules in the EU.

Tesla has upped the pressure on major German carmakers such as Volkswagen in recent years with its plans to open a manufacturing plant just outside Berlin next July.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders