Volkswagen to Slash Office Jobs by Next Year, Says Report

Steph Willems
by Steph Willems

Like ripples in a pool of sulphur-rich oil, the impact from Volkswagen’s diesel emissions scandal keeps spreading.

In a cost-cutting measure designed to mitigate the growing financial damage caused by the scandal, Volkswagen is planning to cut 3,000 administration jobs in Germany, according to Reuters.

The source of unofficial claim comes from two contacts inside the company who contacted German news outlet DPA. How and where the positions would be eliminated is unknown, but the report says the jobs would be gone by the end of 2017.

Volkswagen employs about 40,000 workers in various office positions in Germany, and has already announced it will be shedding temporary administrative positions as an efficiency measure. Other measures include a drop in corporate investment and a company-wide efficiency blitz, which the head of Volkswagen’s worker’s union called “unrealistic” earlier this week.

At Tuesday’s meeting between Volkswagen executives and staff, labor boss Bernd Osterloh made it clear he did not want the planned efficiencies to harm the employment of his members.

Volkswagen is currently in triage mode as it tries to save a patient that is having cash bled from it, seemingly from every pore.

The route forward will mean hard choices, and Volkswagen Group CEO Matthias Müller said Tuesday that the financial pain to the company will be “substantial and painful.”

The recalls of 11 million affected diesel cars has yet to be accomplished, and a fix could still be months away.

In addition to widening investigations in Germany, a fraud case starting in France, and looming environmental fines and a roughly $40 billion lawsuit from the U.S. Justice Department (in addition to a fraud investigation from that same entity), the automaker learned this week that German insurer Allianz plans to sue.

Reports have stated Allianz will go after Volkswagen this month to recoup money it lost when the company’s share prices nosedived after the scandal became public last September.

Steph Willems
Steph Willems

More by Steph Willems

Join the conversation
2 of 32 comments
  • FreedMike FreedMike on Mar 10, 2016

    So...once again the working stiffs get to pay the price for someone else's wrongdoing. Pretty revolting. Well, at least they have good unemployment benefits in Germany.

  • Kosmo Kosmo on Mar 11, 2016

    I know I've said this before, but the best overall solution to this mess with the least impact to all factors world-wide would be to leave the cars as-is, fine VW stiffly ONCE, donate the money to a charity pool of some sort, and move the heck on.

  • Redapple2 Another bad idea from the EVIL gm Vampire.
  • Daniel J Alabama is a right to work state so I'd be interested in how this plays out. If a plant in Alabama unionized, there are many workers who's still oppose joining and can work.
  • ToolGuy This guest was pretty interesting.
  • NJRide So this is an average age of car to be junked now and of course this is a lower end (and now semi-orphaned) product. But street examples seem to still be worth 2500? So are cars getting junked only coming in because of a traumatic repair? If not it seems a lot of cars being junked that would still possibly worth more than scrap.Also Murilee I remember your Taurus article way back what is the king of the junkyard in 2024?
  • AMcA I applaud Toyota for getting away from the TRD performance name. TuRD. This is another great example of "if they'd just thought to preview the name with a 13 year old boy."