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Volkswagen to Cut 30,000 Jobs After Emissions Scandal

FRANKFURT, Germany — Automaker Volkswagen said Friday it will shed 30,000 jobs to cut costs as it tries to recover from its diesel emissions scandal and invests more in electric-powered vehicles and digital services.

Company officials said that 23,000 of the job cuts will come in Germany. It said the measures will save some 3.7 billion euros ($4 billion) a year from 2020.

Image: Rust-covered Volkswagen logo
A Volkswagen logo covered in rust. KARL-JOSEF HILDENBRAND / EPA, file

Volkswagen has agreed to pay $15 billion under a settlement with 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.

The company has said it aims to cut nonessential costs and investments and shift investment toward battery-powered cars and services such as car-sharing and ride-sharing.

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.

Image: Matthias Mueller
Matthias Mueller, CEO of German carmaker Volkswagen. RONNY HARTMANN / AFP - Getty Images

Herber Diess, head of the core Volkswagen brand, said that Volkswagen had let its costs rise and "lost ground in terms of productivity."

He added: "We are overhauling the entire VW brand and are getting it ready for the future."

Volkswagen Group, with its multiple brands, has more than 600,000 employees but the cuts will mainly fall on its 120,000-strong German work force.

Other job cuts are foreseen in Brazil and Argentina.

FROM JUNE 28: Volkswagen Emissions Settlement to Reach Nearly $15 Billion 2:10