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Volkswagen is spiking 30,000 jobs as part of a huge restructuring programme

Nov 18, 2016, 14:22 IST

An upside-down Volkswagen beetle car, part of a fountain sculpture in front of a branch of a Swiss Volkswagen importer, is pictured in the town of Buchs near Zurich, Switzerland September 26, 2015.REUTERS/Arnd Wiegmann

German carmaker Volkswagen is axing about 30,000 jobs over the next five years as part of a huge restructuring programme.

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The group confirmed the details in a press conference at 9:30 a.m. CET (8:30 a.m. GMT).

Executives from VW said "23,000 of these jobs [that will be cut] will be from Germany."

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While VW said the job cuts relates to a shift toward electric vehicles and digital mobility, the announcement follows soon after it settled a court case in the US related to the emissions scandal.

A US federal judge in October approved Volkswagen's $14.7 billion (£12 billion) settlement with regulators and owners of 475,000 polluting diesel vehicles. It also said, as part of the deal, that it would begin buying back the vehicles in mid-November.

At the end of 2015, VW's former CEO Martin Winterkorn stepped down.

The company cheated diesel emissions tests in the US for seven years.

It did so through a clever piece of software that could identify when it was being tested and reduce harmful exhaust so it looked as if the cars met requirements, when in fact they didn't.

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Volkswagen was caught by independent testing carried out by a clean-air advocacy group, The International Council on Clean Transportation, which tested the cars because it thought they were such a great example of how diesel could be a clean fuel.

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