VW profits hit by job-cut charges

[Imhotep Evil]

VW profits hit by job-cut charges

The cost of a major restructuring at Volkswagen has hit profits at the carmaker for the quarter to September.

Quarterly profits at Europe's biggest carmaker slumped by 92% from 282m euros (£189m; $357m) to 23m euros.

However, sales rose 7% to 25bn euros during the quarter, fuelled by healthy demand at VW's Audi and Skoda arms.

VW said redundancy payments, aimed at eliminating up to 20,000 jobs, were booked into the quarter, accounting for the sharp dip in profits.
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http://news.bbc.co.uk/2/hi/business/6090846.stm

 

[siko]

Ouch, that a big hit in profits...

 

[Ultimate Car Guy]

Its so painfull to see so may jobs go. How about all those families!

These job chages are just one-off expenses. So they'll leave a massive dent in their financials this year, but next year it should sort itself out. This year's profit figure wouldnt really givew a good indication of the true performance of the VW group.