Volkswagen will reduce 7 thousand employees due to electric car development

Volkswagen will fire 7 thousand employees in the next five years. The decision will complement the plan which was announced in 2016. Then the automaker announced a reduction of 23 thousand employees. It should be noted that it is about 19% of the company's staff in Germany.
The reorganization will affect administrative positions. In other words, the company needs money for the development of electric cars.
So, the automaker optimizes work processes from the head office to factories, writes WSJ. The company will also invest € 4.6 billion in the automation of office processes and the purchase of new IT systems.
The new reductions will be about 6% of Volkswagen`s state in Germany and about 1% around the world. At the same time, the company will hire two thousand software developers and engineers who specialize in electric vehicles.
Volkswagen's research and development costs rose to € 13.6 billion in 2018. The company estimates the cost of its electric cars line at more than € 30 billion by 2023.
The company also announced that they are going to release 70 new electric car models instead of the previously planned 50.
Volkswagen expects to increase the electric vehicles sales share to 40%, as well as give other manufacturers access to the MEB platform which is used for electric cars development.
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