VW Responds To Emissions Cheating Fallout With . . . . 30,000 Layoffs (Of Course)
FRANKFURT, Germany (AP) — Volkswagen announced plans Friday to cut 30,000 jobs in a wide-ranging restructuring of its namesake brand as it tries to recover from a scandal over cars rigged to cheat on diesel emissions tests. The German company said the job cuts are part of a long-term plan to improve profitability and shift resources and investment to electric-powered vehicles and digital services.
Company officials at a news conference at its headquarters in Wolfsburg 23,000 of the job cuts will come in Germany and that measures will save some 3.7 billion euros ($4 billion) a year from 2020.
CEO Matthias Mueller said it was "the biggest reform package in the history of our core brand." In addition to Volkswagen, the company also makes cars under other brands including Porsche, Audi, SEAT, Skoda and Lamborghini.
The layoffs cap a difficult year for Volkswagen, which has been embroiled in an emissions-rigging scandal that damaged the company's reputation and cost it billions. In response, Volkswagen has agreed to pay $15 billion to U.S. authorities and owners of some 500,000 vehicles with software that turned off emissions controls. Around 11 million cars worldwide have the deceptive software.
EDIT
http://talkingpointsmemo.com/world-news/volkswagen-cut-thirty-thousand-jobs-after-emissions-scandal
