Faced with the biggest crisis in its history – Dieselgate – Volkswagen on Friday confirmed its most expansive reform program since its founding in 1937.
The automaker’s core brand plans to slash annual costs by €3.7 billion ($3.9 billion) by 2020 and lay off tens of thousands of workers, the chief executive of VW’s core brand, Herbert Diess, said Friday.
The cost cutting will result in 23,000 layoffs at VW plants in Germany and further cuts in the Americas, Mr. Diess said at a joint press conference with VW Group CEO Matthias Müller and works council chairman Bernd Osterloh, confirming a story in Handelsblatt.
The VW Group, which also makes Audi, Porsche, Skoda and other car brands, had 624,000 employees worldwide at the end of September. The VW core brand had 125,000 employees in Germany at the end of 2015. The non-executive supervisory board, which has to sign off on all major strategic decisions, will meet later Friday to discuss the savings plan.