VW to shed 30,000 jobs as it cuts costs

VOLKSWAGEN is planning to cut 30,000 jobs over the next four years as the car production process becomes more mechanised and it attempts to maintain profitability following the emissions scandal which cost it $14.7bn (£12bn) in fines.

The carmaker is hoping the 5pc reduction in headcount will save $3.9bn (£3.16bn) a year, and free resources to fund its shift into electric and self-driving cars.

The axe will fall hardest in Germany, where 23,000 job cuts are slated, although VW’s chief executive Matthias Mueller ruled out forced redundancies, saying the company will instead rely on natural attrition.

The carmaker has 600,000 staff around the world, almost twice as many as rival Toyota, although they produce similar numbers of vehicles each year.

Volkswagen has also committed to create 9,000 new jobs focusing on developing electric car technology.