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Volkswagen to cut 7,000 jobs in Latin America

Published: 20 November 2016 Sunday, 07:32  AM

Volkswagen to cut 7,000 jobs in Latin America


German carmaker Volkswagen will shed 7,000 jobs in Latin America as part of its major restructuring plan, Volkswagen do Brasil announced Friday.

Some 5,000 jobs in Brazil and some 2,000 additional jobs in Argentina are to be scrapped in the next five years, VW do Brasil told the news website GI.

VW, which continues to suffer in the wake of a damaging emissions scandal, announced the restructuring plans at meeting at its headquarters in the western German town of Wolfsburg.

Europe`s biggest carmaker is to cut 30,000 jobs worldwide by 2025, of which 23,000 cuts will occur in Germany.

Sources told dpa earlier that the job cuts could save Volkswagen some 3.7 billion euros (3.92 billion dollars) by 2020, depending on how many employees choose to go into partial retirement.

The savings are sorely needed after the company admitted in September 2015 to the manipulation of diesel engine emissions tests.

The admission led to mass recalls and compensation settlements in the billions of dollars, some of which are still under negotiation.