Volkswagen announces layoff plan
Up to 5,000 jobs could be affected at Volkswagen by the end of 2023 as part of a cost reduction intended to finance its transition to electric.
AP - Jens Meyer
Text by: RFI Follow
2 min
New austerity cure at Volkswagen.
The automaker plans to cut up to 5,000 jobs in Germany.
A job reduction plan which will enable the German group to become a pioneer in automotive change.
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Up to 5,000 positions could be affected at Volkswagen by the end of 2023 as part of a cost reduction intended to finance its transition to electric.
The manufacturer has reportedly reached an agreement with the works council on a plan to open partial retirement to people aged 57, while offering early retirement to older employees.
Management expects up to 900 employees to opt for a short-term early retirement formula.
Between 2,000 and 4,000 people could leave the company as part of a gradual cessation of activity.
At the same time, Volkswagen plans to extend the hiring freeze until the end of the year.
Whereas previously this freeze had to end at the end of the first trimester.
According to the German newspaper
Handelsblatt
, the manufacturer estimates that this plan will cost 500 million euros.
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Automotive
Germany