Volkswagen denies any job cut rumors

German carmaker Volkswagen has admitted that they have got serious problems but denied the market rumors that they were considering cutting as many as 10,000 jobs.

VW personnel chief Horst Neumann said that he had not told workers’ representatives that planned job cuts could be extended as the media had reported in the papers. He was quoted as saying, “I have never said such a thing. The situation at VW is serious, but there is no reason to panic, and certainly no reason to create panic.”

The company had said in a statement in February that up to 20,000 German jobs could be affected from the three-year restructuring program they had initiated at its passenger car business. Media had reported rumors that these cuts could be extended by another 10,000 jobs. The report also claimed that VW was planning to move the production of next generation Golf model from its Germany’s Wolfsburg plant to some other location.