Nov 21, 2016 08:20 AM EST

Three Reasons Behind The VW Axing; Volkswagen Emissions Scandal Triggers 30,000 Job Cuts Worldwide

After the massive fiasco that is the Volkswagen Emissions Scandal, the German car maker has made the decision to lay-off a whopping 30,000 jobs from their workforce. The latter was done in an effort to bounce back from the scandal, and to restructure their company.

Looking back at the Volkswagen Emissions Scandal that took place last year, apparently, the company confirmed that they had fitted 11m diesel cars with special software. The said software would allow the automobile to cheat emissions tests. This massive decision-making failure triggered Volkswagen's first annual loss in 20 years. It doesn't end there, the German company also faces numerous cases worldwide.

As a result, Volkswagen also had to pay a settlement in the US of $15Bn which will be split between the authorities and the owners of the affected vehicles. 

According to BBC, the said job cuts will occur in the core Volkswagen business, this means that other brands including Porsche, Audi and Seat are excluded. Most of the job cuts will take effect in Germany, while the rest will occur in Brazil, Argentina, and North America. 

As per the CEO of the german company, Matthias Müller says that this is the biggest reform package in the history of Volkswagen. The decision of cutting a huge amount from their workforce did not come easy, however, it was deemed necessary by the company. According to Herbert Diess, Volkswagen's brand head, this was not an easy decision to make. "We are tackling the problems at the root, even if it's painful." He said. "Many didn't think we could do it. Today, we have shown that Volkswagen can and will change." 

Despite the bad light that has fallen upon their company, Volkswagen is doing what they can to stabilize themselves and their brand. Part of the restructuring was to let 30,000 people go. The bad news was shared on Friday at a press conference at Volkswagen's headquarters located in Wolfsburg. 

The Guardian reported that there are three reasons behind the axing of 30,000 jobs. The first of which is to prepare for the huge amount of lawsuits heading their way from every part of the globe.

Moreover, the german car making company is reportedly lagging behind their competitors, even Peugeot. The last reason is a hard truth to swallow, as the company believes that the future is made of electronic vehicles, and to manufacture these do not need many people. Stay tuned to Jobs & Hire for more updates about Volkswagen and how they pick up the pieces after the Emissions Scandal. 

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
TRENDING ON THE WEB

Join the Conversation

Real Time Analytics