Volkswagen (VLKPF, -1.89%) is to cut up to 7,000 jobs by 2023 so that it can increasingly focus on electric vehicles and production automation.
Handelsblatt reports the move — which will primarily hit administration workers in Germany — will free up €8 billion ($9 billion) in cash that can be redirected into research and development.
“We have already achieved a great deal with the pact for the future: but there is still much more to do if we are to manage the challenges facing us beyond 2020 as well,” COO Ralf Brandstätter said in a statement. “We will significantly step up the pace of our transformation so as to make Volkswagen fit for the electric and digital era. Volkswagen is to become more efficient and agile and a more attractive and modern employer, especially in administration.”