Friday, November 18, 2016

Volkswagen cuts 30K jobs after emissions cheating scandal

The move is expected to impact around 5 percent of its global workforce, though the cuts are supposed to largely fall on the workforce in Germany. The positions will be eliminated through early retirement and attrition.

VW added that it is also creating 9,000 new technology-related jobs, which current employees could be considered for, according to the AP.

The German automaker said the job cuts are part of a major effort to restructure its brand, increase profitability and move towards electric-powered vehicles and digital services.

The company’s chief executive officer Matthias Mueller called the move "the biggest reform package in the history of our core brand."

The news comes more than one year after regulators announced they had discovered “defeat devices” for emissions tests on 11 million vehicles produced by VW worldwide. The legal fight that ensued will cost the automaker tens of billions of dollars to settle.

A federal judge approved a $14.7 billion settlement last month, which will go toward repairing or replacing 2-liter diesel VW and Audi vehicles that had been equipped with software that VW installed to allow vehicles to skirt federal emissions limits. The settlement will also pay for environmental penalties and research on zero-emissions vehicles.
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