Volkswagen would be about to cut thousands of jobs. That reports the German Handelsblatt Sunday. The reason: cut back.
According to the German business newspaper, this involves five thousand jobs. Press agency Reuters keeps it at a maximum of four thousand jobs. This should reduce fixed costs, so that the group can produce more cheaply. Volkswagen wants to get started by sending a large number of employees aged 57 or older into early retirement, an operation for which it has reportedly set aside € 500 million. Options for other pension schemes are also on the table.
In addition, according to Handelsblatt the hiring freeze was extended until the end of the year, because there is no room for new staff. The group would only like to make an exception for the software and IT departments. Those are precisely the things that Volkswagen is increasing its commitment to. The fully electric ID series, among other things, should benefit from this; the software still appears to be a sensitive matter. Volkswagen would also try to spare production employees as much as possible.
The long-term savings should allow for the necessary investments in new technology and electric driving. Volkswagen may announce more about potential staff cuts later today during the presentation of its annual results.