VW Workforce Starts to Feel Pinch From Diesel-Emissions Scandal

  • Carmaker cuts one extra shift at Salzgitter engine factory
  • VW to give efficiency program "turbo" boost, labor leader says

The Long Rise and Rapid Fall of Volkswagen

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Volkswagen AG’s 600,000-person workforce is starting to feel the impact of the diesel-emissions scandal as the carmaker cuts spending in anticipation of fines, recalls and a drop in U.S. sales.

Volkswagen slowed production at one of its biggest engine factories and froze hiring in Germany at its unit that makes car loans, the Wolfsburg, Germany-based company said Thursday. More measures to rein in spending are expected as Volkswagen seeks to weather the crisis by giving its efficiency program a “turbo” boost in the billions of euros without cutting jobs, Bernd Osterloh, VW’s labor chief, toldBloomberg Terminal workers in a letter on Sept. 24.