In order to cope with the high costs triggered by the emissions scandal, Volkswagen plans to cut around 3,000 office jobs in Germany by the end of 2017, Reuters reports.
Volkswagen has set aside at least 8.7 billion euros to cover the recall cost of cars affected by the cheating software. Europe’s largest automaker is trimming its expenditure from different operations, including hundreds of jobs at its plants. It also reduced its 2016 investment strategy by 1 billion euros and ceased some unprofitable models to reduce the costs triggered by the scandal. According to sources, the German auto group plans to shed around 3,000 office jobs in Germany by the end of 2017. VW employs about 120,000 workers at its Western German plants and its financial services division, with about a third of those being office positions. “The Volkswagen brand has initiated an efficiency program that is affecting all areas, including personnel costs,” a VW spokesman said. Costs can be cut by reducing temporary work contracts, filling vacancies internally and making fewer hirings, the spokesman added, declining to give further details.
Separately, Volkswagen is still struggling in the US to strike a deal with the regulators around the affected cars, six months after the emissions disclosures, forcing the head of the regional branch– Michael Horn – to step down. Germany’s Economy Ministry recently said he had “great trust” that Volkswagen will clear up all allegations and achieve a solution with US authorities in the car emissions probe. “We see that VW is a very strong, important company and have greatest trust that it will handle the whole informing process in the best manner and that it will yield good results in the USA,” a spokesman of the Economy Ministry said.