The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture For Transport Equipment Manufacture Of Motor Vehicles, Trailers And Semi-Trailers 29.10 - Manufacture of motor vehicles
3,000 jobs Number of planned job losses
Announcement Date
10 March 2016
Employment effect (start)
10 March 2016
Foreseen end date
Description
Volkswagen (VW), Europe’s largest producer of cars, will probably cut about 3,000 jobs in Western Germany by the end of 2017. Job cuts are due to the losses of the emissions test-rigging scandal. However, the company has yet to confirm these reports. As a result of the scandal Volkswagen will reduce investments of over €1 billion. Mostly affected are office jobs, especially temporary workers. According to the British hedge funds TCI, Volkswagen can save up to €3 billions through natural fluctuation. Thereby, the company can avoid compulsory redundancies. The financial director announced to present the new business strategy 2025 before the summer. The strategy will include inter alia new rules for salaries of top managers.
Volkswagen, headquartered in Wolfsburg, currently employs 120,000 workers in Western Germany and 610,000 worldwide. For latest restructuring at VW in Germany see January 2016.
Sources
10 March 2016: Reuters
18 May 2016: Handelsblatt (online)
10 March 2016: N-TV Online
Citation
Eurofound (2016), Volkswagen, Internal restructuring in Germany, factsheet number 87717, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/87717.
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