Volkswagen says is ‘adapting its financial planning to current trends and creating a solid basis’ by implementing a new "TOGETHER – Strategy 2025”.
This plan aims to reduce the capital expenditure and development costs - which a large chunk of the savings made with job cuts, following the unresolved emissions-cheating scandal.
Reports of 30,000 jobs worldwide follows news from VW that 'even in the current fiscal year, investments in product-unrelated areas have been reduced by approximately €1 billion'. "This is a major achievement brought about by all brands and companies of our group, and it frees up funds for important future projects," remarked Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft.
"We are also setting the course for the Volkswagen Group of the future," Müller added. "In order to become a global provider of sustainable mobility, we are pressing ahead with future projects such as electromobility, digital connectivity and new mobility services, equipped with the necessary resolve and financing," the CEO commented. "At the same time we are investing more selectively and are setting clear priorities. Volkswagen Group will refine its focus – also with regard to investments and development expenditures."
The BBC reports about 23,000 of the losses will be in Germany, where the car giant currently employs 120,000 workers.
"In view of the major challenges and the still unresolved diesel issue, this year's investment planning session took place at a particularly challenging time" said the Group CFO Frank Witter. The Volkswagen Group must realign but also look ahead, despite these additional strains. "Intense pressure to innovate and rising emission standards will continue to require a great deal of discipline in cost management and investments," Witter continued. "However, it would be very imprudent not also to invest in the future in this significant phase of transformation in the automotive industry."