Reeling from an emissions scandal that cost billions of dollars and eroded the value of the brand globally, Volkswagen is reportedly cutting 30,000 jobs.
The job cuts, which will materialize in the next three years, will be at the VW brand and the deal has been agreed with the labour unions, Reuters reported citing sources at Europe's biggest automaker. Volkswagen has not commented on the news yet.
The job cuts will help Volkswagen reduce costs in Germany and help find the money needed for addressing the diesel emissions cheating scandal. As many as 23,000 job cuts will be in Germany alone, where the costs are high. Most of the remaining job cuts will happen in North and South America, Germany's Handelsblatt newspaper reported.
The measure will help the embalmed company save 3.7 billion euros ($3.9 billion) annually. Volkswagen has s 610,076 employees world-wide.
The financial savings from the job cuts will be used for driving research in electric cars and driverless vehicles, the source said. Investments in these sectors will create as many as 9,000 new jobs.
Volkswagen is likely to make official announcements regarding the VW brand on Friday in a scheduled press meet. The carmaker said on Thursday Chief Executive Matthias Mueller and other senior executives will talk about a revamp of the VW brand at Friday's event at Volkswagen headquarters in Wolfsburg.