VW brand to cut up to 7,000 jobs in bigger savings push

Volkswagen Group said it will shrink the workforce at its core VW passenger cars brand by up to 7,000 staff in a bid to raise the brand’s operating margin to 6 percent.

The automaker also aims to raise productivity and make 5.9 billion euros ($6.7 billion) worth of annual savings by 2023.

VW has ruled out compulsory layoffs until 2025, but early retirement and not filling positions will help the automaker to reduce its workforce between 5,000 and 7,000 positions, the company said.

“We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era,” VW brand COO Ralf Brandstaetter said.