The automobile giant said it is pumping up to €4billion (£3.5billion) on digitalisation from now until 2023, adding that non-production jobs would be let go. But as part of the transformation process, Volkswagen also unveiled plans to create 2,000 new jobs. The redundancies will reportedly impact employees in Germany and no job cuts are expected to take place until until 2029. Volkswagen said in a statement: “Agile working methods, improved processes and digitalisation are to reduce the burden on employees and speed up processes.

“Tasks that used to be performed manually are to be simplified through improved IT.”

Volkswagen brand’s chief operating officer, Ralf Brandstatter, said: “Our digital transformation roadmap adds further momentum to the modernisation of Volkswagen.

“We are laying the sustainable foundation for making the company fit for the digital era.

“We are accumulating new digital expertise, and making all areas of our organisation faster, leaner and more competitive.

“At the same time, we are creating new, modern digital and agile jobs and improving our productivity.

“The cost reductions accompanying the investments also help Volkswagen to finance the transformation from its own resources.

“The brand has set its sights on achieving an operating return on sales of 6 percent by 2022. That is three years earlier than originally planned.”

Last month it was announced that Ford was letting go of around 7,000 jobs in a restructure which will impact 10 percent of its global workforce.

The company wants to save around £471million ($600million) per year by eliminating bureaucracy and increasing the number of workers reporting to each manager.

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Meanwhile, Jaguar Land Rover recently posted a £3.6billion annual loss after being dragged down by a dip in sales from China.

The car maker first announced a £2.5billion turnaround programme earlier this year.

So far the company has spent more than £149million on redundancy costs.

Jaguar Land Rover claims the programme has already saved the company £1.25billion.



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