Volkswagen announces cuts of up to 5,000 jobs in German plants

Share

14 March 2021 Cost containment plan by 2023 to finance the switch to electricity.

German auto giant Volkswagen has announced a plan to cut jobs in Germany, which could go as high as 5,000 employees, as part of a cost cut to free up resources for electric vehicles. 

In a press release, the group announced an agreement with the unions that provides for "up to 900 employees" to opt for a short-term early retirement formula, while a "four-digit number", from 2,000 to 4,000 employees, would leave the company as part of a plan for the progressive cessation of business

Already in December, the carmaker announced that it would reach an agreement with the unions by the end of the first quarter of 2021 to lower costs by 5% by 2023, so Volkswagen will offer early or partial retirement to older employees.

The German car giant said it had developed a plan to offer partial retirement to those born in 1964, and early retirement to those born between 1956 and 1960. According to the Handelsblatt newspaper, the plan would cost 500 million euros.

Volkswagen also announced an increase in the budget for employee training from 40 to 200 million euros.

The hiring freeze has also been extended until the end of 2021, previously foreseen only for the first quarter, while external hires can only be made in sectors such as technology development and digitalization.

In view of the industrial revolution that the car manufacturer initiated, the CEO of Volkwagen Group Italia, Massimo Nordio, in an interview with Corriere della Sera, represented how to quickly promote and facilitate electric mobility: "Since 2017 we have launched the most extensive electrification initiative for the entire automotive industry. Incredible investments have been planned, over 70 billion euros, and 70 full electric models will be produced by 2030. An important acceleration is underway to reach global climate targets and reach to be a carbon neutral company by 2050. Our goal is '

' ".