Truck and bus builder MAN, part of Volkswagen, is wiping almost a quarter of the workforce worldwide. It’s 9500 jobs. Three factories, in Austria and Germany, also seem to be closing down.
According to MAN, the procedures are needed to improve profits. The reorganisation is expected to increase business performance by EUR 1.8 billion in the long term.
Man is part of Traton, a subsidiary of Volkswagen and one of the world’s largest manufacturers of commercial vehicles. It’s Traton’s every interest in raising MAN’s profit margin. This will give us room to invest in new technologies, such as electric trucks.
In terms of profitability, MAN’S truck division has lagged behind ‘truck sister Scania’, also part of Traton. The parent group of Man and Scania had already cancelled the financial targets for this year due to the crisis earlier.