Volkswagen Cuts 30,000 Jobs
Volkswagen AG trades today at 130.70 euros per share on XETRA in Frankfurt, Germany, representing an increase of 1.60 euros or 1.24% from the previous close of 129.10.
The stock price of the automaker was far away from the peak mark of the last six months when VOW changed hands at 141.35 euros per unit.
The German giant managed to reach a vital agreement with workers to cut as many as 23,000 jobs and save 3.7 billion euros ($3.9 billion) in expenses as the company tries to claw back from the emissions-cheating scandal.
Volkswagen stated its serious plans to initiate investing in electric vehicles, according to people familiar with the matter. The labor cuts will come through attrition, with the German automaker agreeing to no forced layoffs until 2025, said the people, who asked not to be identified before the official announcement on Friday at a press conference starting at 9.30 a.m. in Wolfsburg.
The labor agreement is critical to Volkswagen’s efforts to accelerate the restorations of its biggest unit and emerge from the most severe crisis in its history. The VW brand, which accounts for almost half of the group’s sales, was struggling even before the emissions crisis erupted last year.