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Volkswagen to cut 4,000 jobs in modernisation plan

(c) Sky News 2019: <a href="">Volkswagen to cut 4,000 jobs in modernisation plan</a>

Volkswagen says 4,000 jobs are going to be cut as part of a modernisation plan.

The German carmaker said a €4bn (£3.5bn) drive for digitalisation over the next four years would see non-production roles hit.

At the same time, the company said, 2,000 jobs would be created to support the transformation programme.

The job cuts will reportedly be in Germany.

VW set a course for the future when it committed to all-electric vehicles in the wake of the dieselgate scandal in which it was forced to admit the use of software to cheat emissions tests.

It said of the changes: "Agile working methods, improved processes and digitalisation are to reduce the burden on employees and speed up processes.

"Tasks that used to be performed manually are to be simplified through improved IT."

VW also gave a wider undertaking there would be no forced lay-offs over the next 10 years.

Its chief executive Herbert Diess had warned back in March that building zero-emission vehicles required "30% less effort than one powered by an internal combustion engine".

The VW brand's chief operating officer, Ralf Brandstatter, said: "Our digital transformation roadmap adds further momentum to the modernisation of Volkswagen.

"We are laying the sustainable foundation for making the company fit for the digital era.

"We are accumulating new digital expertise, and making all areas of our organisation faster, leaner and more competitive.

"At the same time, we are creating new, modern digital and agile jobs and improving our productivity."

He added: "The cost reductions accompanying the investments also help Volkswagen to finance the transformation from its own resources.

"The brand has set its sights on achieving an operating return on sales of 6% by 2022. That is three years earlier than originally planned."