6/5, 9:19 AM (Source: TeleTrader)
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Volkswagen to invest €4B in digitalization, cut jobs

A digital transformation roadmap revealed on Wednesday by Volkswagen AG includes the creation of two thousand or more jobs by the end of 2023. However, the planned investment of as much as €4 billion in digitalization will end the need for up to four thousand current workers, the automotive giant said and added it agreed with the representatives of employees that the jobs, in nonproduction sections, "will not be restaffed" and that there would be no layoffs through 2029.

The new positions will be mostly in administration and some in manufacturing, according to the statement. The car manufacturer said it targets an increase in productivity of 5% per year through 2023 and that it boosted the future budget for training by €60 million to €160 million. The overall program came with partial retirement options.

The 6% goal for the operating return on sales of the Volkswagen brand was pushed forward by three years, to 2022. "Going forward, we will be taking responsibility for battery cells and battery systems through electric drives to charging infrastructure and recycling – for that we need process digitalization, greater software expertise and lean and agile steering of our worldwide component activities," chief executive of the components division Thomas Schmall said.

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