The digital transformation has not stopped, and even the automobile industry with a long tradition has to embrace. Volkswagen, a German car manufacturer, announced that it will reduce the number of 4,000 general and administrative jobs, which will not be met, and will mainly increase the number of manpower in IT positions, with a maximum of 2,000 jobs.
The Volkswagen statement stated that they will invest up to 40 billion euros in the digital transformation from now until 2023. In the process of digital transformation, there will be a reduction of up to 4,000 general and administrative job vacancies. The various administrative divisions of the Wolkswagen Group do not make up for the general administrative work. By 2023, there will be an increase of 2,000 jobs related to digitalization.
Volkswagen expects to achieve an annual revenue increase of €59 billion at 2023 and to reduce the influence of traditional union leaders. As the digitalization process progresses, the software-based model shakes the profit model of the traditional automobile factory, and the assembly complexity of the electric vehicle is also simpler than that of the gasoline vehicle, reducing the staffing of the production line.
Volkswagen stressed that the disappearance of general administrative work is worrying about layoffs, but the answer is no, Volkswagen still has fairly solid job opportunities. The digital transformation is not necessarily accompanied by layoffs, because the reduced workload of digitalization will re-adjust the tasks of the personnel, and the number of years of retirement with non-study will decline.
Volkswagen COO Ralf Brandstätte said: “Our digital blueprint for transformation has added Volkswagen’s modern innovation drive, and our sustainable foundation in the subordinates has made Volkswagen more adaptable to the digital age.”
The progress of digitalization is not only for the company’s core business, Volkswagen’s core business, but also the need for administrative management to reduce manpower through digitalization. The past story of Volkswagen, a century-old company, believes that everyone is quite familiar. Nowadays, it is on the road of digital transformation and will write a new chapter of the story.
(Source: Flickr/Karoly Lorentey CC-BY 2.0)