Volkswagen Job Cuts

Shayne Tessler's picture

Volkswagen is set to cut approximately 5,000 jobs by 2023 as the company continues on its track to automation. This reality is in-part due to innovation expenses as well as the intention to release electric vehicles in the near future. The company intends to carry out this lay-off initiative by simply not re-hiring to replace retiring employees. Although new individuals will be hired to automation/technological divisions, a significant amount of jobs will still be lost. Furthermore, even though this situation largely impacts the company's german offices, the result will surely be felt when considering the relevance of the automotive industry to the state of Michigan.

As a result, what will be the impact on the state's economy? Is this reality indicative of an upcoming trend in the automotive industry?