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VW Said to Cut 30,000 Jobs, Save $3.9 Billion in Labor Pact

  • Deal helps VW boost margin, create electric and tech jobs
  • Volkswagen agrees to refrain from forced layoffs until 2025
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Volkswagen Changes Gears to Cut 30,000 Jobs

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Volkswagen AG reached a landmark agreement with workers to cut as many as 30,000 jobs globally and save 3.7 billion euros ($3.9 billion) in expenses as the company tries to claw back from the emissions-cheating scandal and invest in electric vehicles.

Reducing headcount by nearly 5 percent will come through attrition as the automaker agreed to refrain from forced layoffs until 2025, the Wolfsburg, Germany-based company said on Friday. After months of intense talks, labor and management agreed on a package to balance cost-cutting with investment as the auto industry shifts away from traditional combustion engines and adapts to car-sharing services and self-driving technologies.