As mentioned in the past post, digitalization play a role to automate the internal processes which were once handled by the employees whose salaries were relatively higher. More and more you get benefit from your retail banking on your smart phones or laptops, banking jobs not only of traditional services at the local branches, but also the intermediate process such as risk assessment are tightened. (Perhaps, no longer needed.) This phenomenon seems be irreversible, and therefore this is considered as a structural change in the banking industry. Where the bankers goes after dropping out?
As if joining to the trend, the car industry is also about to squeeze jobs, attributing to a rise of the electric vehicles. A recent story tells that Audi plans massive job cuts in their home country Germany, a champion of the industry.
BBC: Audi to cut 9,500 jobs to fund electric car push
Carmaker Audi is to cut 9,500 of its 61,000 jobs in Germany between now and 2025 to make more money available for electric vehicles and digital working.
The cuts - which aim to save €6bn (£5.1bn) - will be achieved through an early retirement programme.
But the Volkswagen-owned firm also said its move into electric cars would mean the creation of up to 2,000 jobs.
It comes less than a fortnight after Daimler said it would cut more than 1,000 jobs by the end of 2022.
The car industry is facing a downturn in key markets, including China, as well as increased costs as it meets tougher European Union emissions regulations and the costly switch to electric vehicles. Audi saw falling sales, revenues and operating profits in the first nine months of 2019.
And some stories of job cut announcements in banking industry, too.
FT: Europe’s banks slash 60,000 jobs as outlook turns negative
Bloomberg: Global Bank Job Cull Tops 75,000 This Year as UniCredit Cuts
