30,000 Jobs Will be Gone in the Wake of Huge Emissions Scandal
In order to overhaul the Volkswagen plants in Germany the company has announced it will be slashing 30,000 jobs over the next three years. The company says the move is necessary in order to boost profits. Germany will be the hardest hit with a reduction of 23000 jobs. Germany union leaders believe this can be achieved by voluntary redundancies, early retirement and closing positions as they become vacant. Worldwide the car manufacturer employs more than 610,000 workers.
Volkswagen says the cuts will boost profits by $3.9 billion a year from 2020.
The car company was declared to be cheating on emissions tests recently. The result is tens of billions in fines and compensation payments. Hans Dieter Potsch, chairman at VW, is being investigated by German prosecutors in regards to the emissions cheating scandal. Potsch was the chief financial officer when the scandal broke late last year. Soon after he was appointed chairman.
Volkswagen has admitted that as many as 11 million diesel vehicles worldwide were fitted with software that could cheat nitrogen oxide emissions tests. The company actually came forward following an alert to the world by the U.S. Environmental Protection Agency. Soon after the scandal broke approximately 40 percent of the company’s value was lost. Aside from all of their legal issues, VW investors are demanding more than $9 billion in damages they say they lost due to the automaker’s diesel emissions scandal.