Volkswagen has announced it will cut between 5,000 to 7,000 jobs through attrition and early retirement at its headquarters in Wolfsburg, Germany. Most of the job cuts will be administrative staff. While cutting those job, VW will be creating 2,000 new software and electronics jobs. The cuts are part of a cost savings plan to drive 3€ Billion in annual savings by 2020 and 5.9€ billion by 2023.
The move comes the day after the company announced it will increase its EV plans to build 22 million units over the next decade. Electric vehicles are less complex to build and require fewer workers.
Volkswagen is building a new EV platform and the first vehicle to arrive on the market will be the I.D. Neo, expected sometime in 2020. The I.D. Neo will be built at a plant in Zwickau, Germany. Future electric vehicles will be built in 7 additional factories including Chattanooga, Tennessee.