Volkswagen to Slash Office Jobs by Next Year, Says Report

Steph Willems
by Steph Willems
volkswagen to slash office jobs by next year says report

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.

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.

  • Dukeisduke I tried watching the live reveal last night, but after 15 minutes of jawing by MT+ personalities (and yes, I like Chris Jacobs and Alex Taylor), I turned it off.
  • Paul MBAs gonna MBA.
  • Zipper69 Clearly beyond German thought processes to simply keep A for IC engine and use "E" for all other so you can have a A6 and a E6.
  • Ianw33 It makes me laugh how many complaints i see here in the comments section. Leave it to "car enthusiasts" to be unhappy with the fact that a mainstream auto manufacturer produced a 1K HP car with a warranty that isn't $250K+. can't we just be happy that something crazy/fun exists like this before its gone, even if its not your cup of tea?
  • YellowDuck This is a completely vulgar vehicle. I understand that that is the point, but still...pretty douchey.