Germany’s largest automobile manufacturer Volkswagen announced Friday in a press statement that up to 23,000 jobs in conventional areas in Germany will be eliminated by 2020.
In the meantime, 9,000 new jobs in future-oriented areas where 3.5 billion euros (about USD3.71 billion) would be invested, are planned to be created in Volkswagen’s plants in Germany, said the company.
The Board of Management of the German automobile giant signed a pact for the future with its labor union, to bring Volkswagen brand back to a path of profitable growth.
The pact is expected to make Volkswagen’s earnings annually add by 3.7 billion euros by 2020, among which 3 billion euros stem from German facilities, according to the statement.
Chairman of the Volkswagen Brand Board of Management Herbert Diess said in the statement, “the pact represents a fundamental transformation of the value stream, the development of new competences and strategic investment”.
“We will be transforming the entire brand and making it fit for the fundamental transformation of our industry,” he added. (1 euro = 1.06 US dollars)