Manager Magazine reported this week that 10,000 jobs could be cut at Volkswagen as the automotive company continues in its attempts to recover from the emissions testing scandal.
The news comes not too long after brand manager Herbert Diess demanded a 10% growth in profits in 2016.
Diess has big plans to raise efficiency which some believe means cutting costs in areas such as distribution, production and management.
No concrete numbers or plans have been revealed, but it is thought that 7,000 casual workers will be the first to let go, while the jobs of permanent VW staff are also on the line.
VW have already responded to the article in Manager Magazine and say that “job cuts of the dimensions reported” are not currently being discussed.
“Economic efficiency and employment are equally important goals at Volkswagen,” said the company in a statement.
Volkswagen currently has a profit margin of 2%. The aim is to raise that to 6% by 2018.
According to Manager Magazine, to achieve such a profit margin in 2 years, a major austerity program is the only answer.
Volkswagen sales fell by 7.9% in December 2015, with only Audi able to increase sales.
VW’s sales have fallen by 3.4% in their most important export market, China.
In better news, 900 casual workers at a factory in Baunatal have had their contracts extended until the summer.
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